Bailout fund for scam-hit state-owned banks again
The government is likely to set aside Tk 1500 crore in the upcoming national budget in bailout fund for scam-hit state-owned banks despite opposition from experts, think-tanks and right groups. The proposed allocation is, however, Tk 500 crore less than the bailout fund of Tk 2,000 crore allocated in the outgoing budget, said senior finance ministry officials.
Defaulters swallow BDT 800 billion bank money
Lawmakers have identified the legal loopholes as one of the major reasons why bank-loan defaulters go unscathed, in most cases. In, at least, 600 cases, the court issued order asking the banks concerned not to show the credit status of the borrowers though the central bank’s Credit Information Bureau (CIB) had identified them as defaulters. The lawmakers proposed enactment of a new law by removing the weaknesses of the existing ones. Experts, however, differed with the lawmakers’ proposal and recommended the formation a dedicated bench in the High Court, instead, for settling the loan-default cases. Of the top 25 listed defaulters 18 defaulted on the repayment of full amount they had borrowed. Replying to a query, a BB representative said the volume of default loans in the banking sector was BDT 800 billion, according to the latest estimate.
Cut off yield on 91-day T-bills falls further
The interest rate on treasury bills (T-bills) dropped further on Sunday, as commercial banks rushed to offer bids in the auctions, bankers said. The cut off yield, generally known as interest rate, on 91-day T-bills came down to 0.89 per cent on the day from 0.99 per cent of the previous auction, held on May 20.
Banks asked to submit detailed info on agent banking
Bangladesh Bank has asked banks to submit verified checklist of documentation for getting approval for agent banking operation and opening new agent banking outlet. The BB issued a circular in this regard on Sunday.
BB to release new notes from June 3
Bangladesh Bank (BB) will start new currency note distribution in the market on ahead of Muslim’s biggest festival Eid-ul-Fitr from June 3. The new fresh notes will be distributed from all branches of the Bangladesh Bank, counters of 20 authorised commercial banks in the capital till June 14, said a central bank press release. The notes will be available at Jatrabari Branch of the National Bank, Abdul Ghoni Road Corporate Branch of the Janata Bank, Elephant Road Branch of Agrani Bank, Mirpur Branch of the City Bank, Kawran Bazar Branch of the South East Bank, Bashundhara City (Panthapath) Branch of the Social Islami Bank, Uttara Bank of the Chawk Bazar Branch, Ramna Corporate Branch of the Sonali Bank, Uttara Branch of the Dhaka Bank, Gulshan Branch of the IFIC Bank, Mohakhali Branch of the Rupali Bank, Mohammadpur Branch of the First Security Islami Bank, Rajarbagh Branch of the Janata Bank, Sadar Ghat Branch of the Pubali Bank, Malibagh Branch of the Shahjalal Islami Bank, Basabo Branch of the One Bank, Shyamoli Branch of the Islami Bank Bangladesh, SME and Agriculture Branch of the Dutch Bangla Bank in Dakhain khan, Banani Branch of the Mercantile Bank and Dhanmondi Branch of the Bank Asia.
IFC to help develop venture capital fund
International Finance Corporation (IFC) is likely to help Bangladesh to develop investment friendly climate to accelerate venture capital (VC) fund. VC funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential. Venture Capital and Private Equity Association of Bangladesh (VCPEAB) President Shammem Ahsan said the information adding that IFC officials appreciated Bangladesh’s progress in technology sector specially the investment through VC fund.
Scrutiny helps boost Value Added Tax (VAT) from large unit
The collection of Value Added Tax (VAT) from large businesses increased significantly until March of the current fiscal year (FY). The increase was attributed to the intensive scrutiny and investigation by the Large Taxpayers Unit (LTU). LTU’s VAT collection posted 22.0% growth, although the combined VAT collection grew by 15.0%. The unit collected BDT 313 billion VAT out of aggregate collection BDT 577.50 billion in July-March period.
Singer partners with Zoje Sewing
World renowned industrial sewing machine brand Zoje has partnered with Singer Bangladesh Limited at a ceremony at a city hotel, according to a statement issued in Dhaka on Sunday. Zoje Sewing Machine Co. Ltd. is an industrial sewing machines and equipments manufacturer in China. It is one of the leading industrial sewing machine brands in China with state of the art technology and enriched research and development. At present, they export to more than 60 countries. Now Zoje has 16 major categories and more than 260 different models of industrial sewing machines.
Eight gas companies may offload shares
Petrobangla is working to list eight of its gas distribution companies in the stock market, in a development that is set to bring some cheer to investors. Infrastructure Investment Facilitation Company (IIFC), a consultancy firm, and Roots Investment, a private merchant bank, have been enlisted to conduct a feasibility study on the listing of the eight companies. The companies are: Gas Transmission, Titas Gas Transmission and Distribution, Bakhrabad Gas Distribution, Jalalabad Gas Transmission and Distribution Systems, Paschimanchal Gas, Bangladesh Gas Field, Sylhet Gas Fields and Rupantarita Prakritic Gas. Of these, Titas Gas has already been listed in the market back in 2008 but a further 10 percent shares will now be offloaded.
County’s power generation hits new high of 10,699 MW
The country’s overall electricity generation reached the highest-ever level of 10,699 megawatts (MW) at 9:00 pm on Saturday. It broke the previous power generation record of 10,147 megawatts on May 22. Earlier, 10,137 MW of electricity was generated on April 24, 2018.
AKIJ TAKES OVER TWO MALAYSIAN FIRMS
Akij Group has taken over two Malaysian companies in a transaction involving $77 million (about Tk 644 crore) — the first cross-border acquisition by a Bangladeshi company. “This was a giant step for a Bangladeshi enterprise,” said Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, which provided $13.50 million to Akij Group. The two companies, Robin Resources and its subsidiary Robina Flooring, manufacture reconstituted wood products and export to about 60 countries, generating $8-9 million in profit a year, according to Akij. To fund the transaction the local business giant provided $20 million from its export retention quota and took $24.50 million from German development finance institution DEG, $13.50 million from Standard Chartered, and $10 million from a UK-based company. The remaining $10 million would come from the two companies’ dividend. Skilled expatriate Bangladeshis in Malaysia will be employed by the two companies now, said SK Jamil Uddin, director of Akij Group. The initiative will help the country strengthen its image in the global market, Bijoy said in a press conference yesterday. “We are proud to be a partner to the acquisition, where we played the role of financier, nominated bank, and security agent amongst others,” he added. Akij is the seventh Bangladeshi company to invest abroad.
USD 30.1 million export earnings from shipbuilding in 10 months
Export earnings from the thriving shipbuilding industry in the first ten months of the current fiscal year 2017-18 was USD 30.1 million, according to latest data from the Export Promotion Bureau (EPB). The data showed Bangladesh made the earnings exporting ships, boats, and floating structures in the period from July 2017 to March 2018. Business Wire, a global economic data analysis agency, estimated that around USD 650.8 billion will be spent for the procurement of new ships in the year 2026 across the world, mainly focusing on building environment-friendly ships. While the market for small ocean-faring vessels would grow to USD 400 billion annually, stakeholders in Bangladesh hope that the country could gain at least 1.0% of the market share, worth USD 4.0 billion annually.
Bangladesh targets $1bn from agro-food export
A help desk named “DCCI Agro Service Desk” has been set up at the Dhaka Chamber of Commerce and Industry (DCCI) for the development of Bangladesh’s agriculture sector as well as to assist the stakeholders and entrepreneurs of the industry. DCCI Senior Vice-President Kamrul Islam FCA inaugurated the desk on Sunday. The desk was set up with the supported of USAID’s Agriculture Value Chain (AVC) Project. During the program, Kamrul Islam said that the contribution of agriculture to county’s GDP is 14.75% and it employs 40.6% (around 24.5 million people) of the total employment. He said the export earnings from Agro-food reached to US$553 million in 2016-2017 which is only 1.59% of total export basket. Bangladesh also set a target to achieve US$1 billion from Agro-food export by 2021, said a DCCI press release. He said Global Good Agriculture Practice (GAP) is an internationally recognized standard practiced by the farmers or producers by adopting which we can ensure safety and quality food chain, capturing new market advantages, improve workers’ health, working conditions and creating new market opportunities for farmers/exporters in developing countries. To enter into the world market especially the European and US markets, GAP and other standards need to be strictly maintained. A recent study of Institute of Public Health and Nutrition, Bangladesh suggests that 43 consumer goods selected as sample was found to be adulterated and average adulteration rate was 40% while100% adulteration was found in 13 consumer goods.
REHAB for Tk20,000 crore refinancing fund
The Real Estate and Housing Association of Bangladesh (REHAB) wants the government to form a Tk 20,000 crore housing loan refinancing fund to help lower- and middle-income families to solve their housing problem. The realtors want to hear a positive decision in the upcoming budget as they have been demanding for such a fund for a long time.
Indian clothes dominate Eid fashion market
Clothes from India and Pakistan continue to dominate the Bangladesh’s apparel market ahead of the peak sales season of Eid-ul-Fitr thanks to their affordability and attractive designs. “Salwar suits and sarees mostly come from India,” said Khalilur Rahman, who has a store in the capital’s Bashundhara City.
Airlines cash in on Eid rush
Local airlines are expecting a boom in business during Eid vacations as an increasing number of people are flying homebecause of the heavy traffic congestions on the highways. Four Bangladeshi airlines plan to introduce 60 additional flights on different domestic routes to meet the growing demand in the last three days of Ramadan ahead of Eid-ul-Fitr. State-owned Biman Bangladesh Airlines and three private carriers—US-Bangla Airlines, Novoair, Regent Airways—now run more than 80 domestic flights to eight destinations. The airlines will add more flights to Saidpur and Jessore from Dhaka while the demand for such flights to Rajshahi and Barisal is also on the rise, senior executives of a number of airlines said. Around 90 percent of the tickets on different domestic routes have already been sold out, which has prompted the airlines to add more flights. Flights to Cox’s Bazar and some international destinations will get additional traffic, ShakilMeraj, a general manager of Biman Bangladesh, told The Daily Star.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||5,456.82||↑ 27.13||↑ 0.50%|
|DJIA||24,753.09||↓ 58.67||↓ 0.24%|
|FTSE100||7,730.28||↑ 13.54||↑ 0.18%|
|Nikkei 225||22,445.27||↓ 5.52||↓ 0.02%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$66.21||↓ 1.67||↓ 2.46%|
|Crude Oil (Brent)||$74.91||↓ 1.53||↓ 2.00%|
|Gold Spot||$1,298.35||↓ 3.9||↓ 0.30%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.43|
|GBP 1||BDT 111.13|
|EUR 1||BDT 97.68|
|INR 1||BDT 1.23|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.