Dutch-Bangla Bank to issue subordinated bonds
The Board of Directors of Dutch-Bangla Bank has approved, in principle, issuance of subordinated bonds subject to approval of BSEC and BB. The bank also needs approval from its shareholders. The issue size will be Tk. 3.0 billion which will be non-convertible under private placement with 7 years tenure. The bonds will help increase the Tier 2 Capital to meet capital requirement under Basel III and to strengthen the capital base of the Bank. The Board also decided that any subsequent changes in the features of the Bond if deemed necessary by the Bank or required by regulatory authorities shall be placed for approval of the Board of Directors of the Bank. The A-category bank was listed in 2001. The sponsor-directors owned 87% stake in the Dutch-Bangla Bank, while institutional investors owned 6.76%, foreign investors 0.21% and the general public 6.03% as on March 30, 2016.
DSE demands fourfold raise in the ceiling
Dhaka Stock Exchange (DSE) in its new budget proposals has sought a fourfold raise in the ceiling of tax-free dividend income to BDT 100,000 from BDT 25,000 to reinvigorate the bourses. Officials said the plea came in a six-point wish list the premier bourse placed for consideration in the coming budget for the fiscal year 2016-2017. The DSE management submitted Sunday the proposals to the National Board of Revenue (NBR), ahead of announcement of the new budget, likely to be unveiled on June 02. After submitting the proposals, the DSE held a press briefing to uphold the importance of their suggestions for bringing about infrastructural capacity of the capital market that passes through ups and downs — and shocks at times. In his written speech, DSE chairman Justice Siddiqur Rahman Miah said their proposals are important for fostering infrastructural development of the premier bourse. Former DSE president and incumbent director Md. Shakil Rizvi was present at the press briefing.
Government won’t budge on enforcing VAT law
The government is rigid on enforcing a new law that stipulates a flat 15% VAT for all businesses — big or small — from the next fiscal. It won’t be truncated value-based VAT system but be turnover-based. Finance Minister AMA Muhith came up Sunday with the confirmation of his move on the VAT law and the valuation-system change, thereby setting aside businesses’ plea for jettisoning enforcement of the new VAT law and uniform rate of the tax. The minister was talking to journalists at his secretariat office on Sunday evening after a meeting with business leaders led by Beximco vice-chairman Salman F Rahman. The business leaders demanded a multiple VAT system instead of a unified flat rate of 15% irrespective of capacities of the businesses. But the finance minister clearly pointed out that no decision had yet been taken in this regard.
Subsidies face deep cuts
Subsidies are set to be cut by 25.93% in the revised budget for this fiscal year due to the decline in fuel and fertilizer prices in the international market, much to the relief of the government. The allocation for subsidy in the revised budget will now be BDT 189.4 billion, down from the initial BDT 255.7 billion, according to a draft estimate of the finance ministry. For the first time, Bangladesh Petroleum Corporation will not require any subsidy from the government exchequer, so its allocation of BDT 8.0 billion in the original budget for fiscal 2015-16 was withdrawn. In the first six months of fiscal 2015-16, the state agency logged in more than BDT 50.0 billion as profits, and after the latest price adjustments, bigger gains are in store. After incorporating all costs and taxes, it costs BPC BDT 61.25 to produce a liter of octane, BDT 62.5 for petrol, BDT 49.25 for diesel and BDT 48.25 for kerosene.
Realtors seek government step to control rod prices
Real Estate and Housing Association of Bangladesh (REHAB) recently sent a letter to the finance minister to help bring down the prices of the materials to a reasonable level, they added. Prices of all construction materials especially steel increased by 25% since March last. Producers are increasing the prices of the construction materials on the pretext of price hike in raw materials in international market and also additional taxes imposed on the materials. A number of traders who import billet are increasing the prices of steel abnormally through syndication, the letter said. The country’s housing sector is passing hard times presently. The sector will see a downfall soon if the government does not interfere in the matter. Besides, the government’s economic vision will also be hampered, the letter mentioned. Besides, the traders increased prices of rod anticipating tax rate increase in the upcoming budget on raw materials, the insiders also said. Brick prices remained steady in last one year and each 1,000 pieces of grade-1 brick now costs between BDT 7,500 and BDT 8,000, traders concerned said.
Users can re-buy blocked SIMs after May 31 deadline: Bangladesh Telecommunication Regulatory Commission
Mobile phone subscribers can re-buy their previous connections if they fail to re-register their SIM cards with biometric data within the May 31 deadline. In a meeting with mobile phone operators yesterday, Bangladesh Telecommunication Regulatory Commission took the decision, allowing a 15-month window for the re-purchase of SIMs. Users will have the option to re-purchase the mobile number, which became a personal identification for them, as a new connection, said a senior official of the BTRC, who was present at the meeting at the regulator’s office. For doing so, the operators will have to pay the SIM tax — BDT 100 per connection — in line with the rules of purchasing new SIMs. Till the first week of May, the total number of re-registered SIMs stood at about 90.2 million, while active connections as of March was 130.9 million. The operators received a poor response from their subscribers for SIM re-registration, said a senior executive of an operator.
World Stock and Commodities
|Index Name||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)*||$45.47||+0.81||+1.81%|
|Crude Oil (Brent)*||$45.94||+0.57||+1.26%|
|Dow Jones Industrial Average||17,740.63||+79.92||+0.45%|
|USD 1||BDT 78.40*|
|GBP 1||BDT 113.05*|
|EUR 1||BDT 89.33*|
|INR 1||BDT 1.18*|
*Currencies and Commodities are taken from Bloomberg.