NCC Bank Ltd. has recently signed a ‘Term Sheet’ with IDLC Finance Ltd. for the issuance of a Coupon-Bearing Subordinated Bond worth BDT 4.0 billion subject to approval from BSEC and Bangladesh Bank where IDLC will act as Arranger. The Issue will enhance the Tier II capital of NCC Bank Ltd. based on Bangladesh Bank guideline of “Risk Based Capital Adequacy” and therefore ultimately increase issuer’s Capital to Risk Weighted Assets Ratio (CRAR).
Bangladesh Bank lowers interest on long-term private sector loans
Bangladesh Bank on Sunday lowered the interest rate for the long-term financing to the private sector entrepreneurs under the World Bank-funded financial sector support project. The BB issued a circular to the managing directors and chief executive officers of all banks saying that from now on the entrepreneurs would be allowed to take loans from banks at a maximum interest rate of LIBOR plus 3.50%. The previous rate was LIBOR plus 4%. The central bank under the auspices of the International Development Association of the World Bank provided USD 254.0 million through FSSP to meet the growing demand for long-term financing in the productive sectors in the country. The BB provided USD 38.5 million to form the revolving fund. Banks disburse the loans in US dollars to the clients by taking fund from the refinance scheme. The banks, CAMELS rating of which is good, are allowed to disburse loan with a lower rate of interest than the other banks, according to the circular.
Bangladesh Bank finds hundi, mobile banking hit remittance
Bangladesh Bank has identified primarily eight reasons including a rise in the use of ‘hundi’ channel even for sending small amount of money by the expatriate Bangladeshis and mobile banking transactions for the recent dip in the inflow of remittances through the banking channel. In an effort to plug the holes, the central bank has convened a meeting of managing directors of 30 banks today. According to a BB paper, the inflow of remittances decreased in recent months as many expatriate Bangladeshis opted to send their money to the country through illegal channels like hundi because of a lower rate of the dollar against the taka in the banking sector. The NRBs in the Gulf countries are now sending their hard-earned money through hundi channel, but the local agents of the hundi system disburse the money to the relatives of the expatriate Bangladeshis through mobile banking, the paper said.
DSE to get full membership of WFE, receives ISO certification
The World Federation of Exchanges in principle has decided to award full membership to the Dhaka Stock Exchange as the bourse has fulfilled all criteria required for the upgradation. The DSE is an associate member of the federation since 2015. Before that, it was a corresponding member of the WFE from 2012. Established in 1961, the WFE, formerly known as the International Federation of Stock Exchanges, is a UK-based trade association of 64 publicly regulated stock, futures, and options exchanges. Meanwhile, the DSE, the country’s premier bourse, also received certificate from the International Organization for Standardization as the bourse fulfilled all the requirements in this regard, said DSE officials.
World Bank – government talks on insurance sector uplift loan likely this month
The government goes for completing negotiations on priority for a World Bank (WB) credit to finance uplift of Bangladesh’s insurance sector on a par with expanding economic activities. Officials said the objective of the ‘Bangladesh Insurance Sector Development’ project is to strengthen the institutional capacity of the sector regulator and the state-owned insurance corporations for enhancing insurance coverage in the country. The negotiations are expected to take place sometime during the current month. The WB has already discussed the funding matters with Bank and Financial Institutions Division (BFID) and the Insurance Development and Regulatory Authority (IDRA), they said. Earlier, the project title was ‘Bangladesh Insurance and Private Pension Market Development’. Currently, the project will be implemented without the private pension-market component, thus renaming it ‘Bangladesh Insurance sector Development project.’ The insurance sector is under supervision of the BFID while pension matters come under the finance division. So, the two have been bifurcated through discussion.
Government seeks ways to lure MNCs to stock market
Government’s finance authority asked Sunday the regulator and relevant agencies to recommend within 10 working days the ways to lure the multinational companies (MNCs) that are unwilling to go public. The ministry of finance (MoF) issued the directive at a meeting as most of multinationals operating in Bangladesh shied away from offloading their shares on the stock market — a measure meant for giving a much-needed shot in the arm of the bourses. Officials said only 13 multinational companies are now listed on the two bourses of the country while 42 others yet to offload their shares. The official said a committee will be formed for examining the whole process to remove obstacles, if any, to bringing the multinational companies in stocks trade. A senior Ministry of Finance official said there is no law that compels the multinational companies to offload shares. But opinion is there the stock market will be vibrant if their stocks are traded on the bourses.
Government plans BDT 30 billion 2nd phase of Savar Tannery Estate
The government is contemplating the second phase of Savar Tannery Estate on 200 acres of land at a cost of around BDT 30 billion to accommodate the left-out tanneries in the first phase, supporting businesses, foreign entrepreneurs as well as the leather goods manufacturers. Sources concerned said the planning of the project is still at early stage. The Bangladesh Small and Cottage Industries Corporation (BSCIC) is likely to submit the project profile next month to the Ministry concerned. A BSCIC official involved with the second phase of Savar Tannery Estate said they will launch the new project officially following relocation of maximum number of tanneries to Savar from Hazaribagh.
Against the backdrop of subscribers’ dissatisfaction on mobile phone services, Bangladesh Telecommunication Regulatory Commission (BTRC) is going to hold a public hearing to listen to subscribers’ complaints on November 22, reports BSS. The hearing would take place in the Institution of Engineers, Bangladesh (IEB) where the subscriber could say their experiences and opinion on call drop, voice call as well as internet bundle packages and prices. This is the first time that BTRC is hosting such an event to resolve the issues. At the public hearing, the senior executives of the mobile operators will be present and they have to respond to queries and complaints.
Major Currencies Exchange Rates Movement in Last Seven Days
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