Classified loans leap to BDT 143.6 billion in 9 months
Loads of classified loans in the country’s banking sector have leapt by nearly 28.0% or `BDT 143.6 billion in the first nine months of the current calendar year, belying close monitoring by the central bank. The volume of non-performing loans (NPLs) rose to `BDT 657.3 billion as on September 30 from `BDT 513.7 billion on December 2015. It was BDT 547.1 billion a year before, according to the central bank latest statistics. On the other hand, the amount of classified loans increased by nearly 4.0% or BDT 23.7 billion to BDT 657.3 billion during the third quarter (Q3) of the current calendar year from BDT 633.7 billion in the preceding quarter. The classified bank credits cover substandard, doubtful and bad/loss of total outstanding credits which stood at BDT 6359.9 billion as on September 30 last from BDT 5846.2 billion on December 31. It was BDT 6300.2 billion on June 30, 2016. During the period, the total amount of NPLs with six state-owned commercial banks (SoCBs) swelled to BDT 299.6 billion from BDT 237.5 billion as on December 31 last. It was 300.8 billion in the Q2 of this calendar year.
The Board of Directors of City Bank Limited has decided to issue subordinated debt (bond) worth BDT 5.0 billion, said an official disclosure on Wednesday. “The bank will issue the bond for raising fund to meet capital requirement under Basel III and to strengthen the regulatory capital base of the bank,” said the disclosure. The issuance of bond is subject to approval from the regulatory authorities – Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC), the disclosure added. Each share of the bank, which was listed on the Dhaka bourse in 1986, hovered between BDT 23.2 and BDT 23.5, before closing at BDT 23.30 on Wednesday. Paid-up capital of the bank is BDT 10,000 million and its authorized capital is BDT 8,757.98 million while total number of its securities is 875,798,031, according to the available DSE statistics.
The government extended Wednesday the tenure of six rental power plants and doubled their tariff rates to over BDT 15 per kilowatt. Apart from endorsing a new lease of tenure of the rented plants and jacking up their electricity prices, the cabinet committee on public purchase also approved 11 other projects that include import of over 1.0 million tons of gasoil, 115,000 tons of jet fuel and 140,000 tons of furnace oil for January-June 2017 period from 10 countries. Per-barrel gasoil price is fixed at USD 2.30, jet fuel USD 3.0 and per-mt furnace oil USD 15.80. The names of the rental power entrepreneurs along with their generation capacities are: Dutch Bangla Power and Association Ltd (100MW), Summit Group-owned M/S Khulna Power Company Ltd (115MW), M/S Khanjahan Ali Power Company Limited (40MW), M/S Acorn Infrastructure Service (100MW), Summit Narayanganj Power Ltd (102MW) and Orion Power Meghnaghat Ltd (100MW).
Grameenphone refuses to pay BDT 300.0 million fine for broadband service
Grameenphone refused to pay a fine of BDT 300.0 million imposed by the telecom regulator for running a broadband internet business in a breach of rules. The deadline for paying the fine ended yesterday, according to Bangladesh Telecommunication Regulatory Commission, but instead of paying, the operator challenged the move in a letter to the commission. A letter signed by Mahmud Hossain, chief corporate affairs officer at Grameenphone, said the notice did not provide any indication of how the BTRC determined the amount of fine. In the letter, Grameenphone denied any wrongdoing by providing broadband internet service. On November 6, BTRC asked Grameenphone to pay BDT 300.0 million in 10 days for providing broadband internet services under Go Broadband. BTRC also fined two ISP operators—ADN Telecom and AGNI Systems Ltd (ASL), partners of Grameenphone in GO Broadband—BDT 0.5 million each.
Mobile operators Robi and Airtel started operation as a merged entity on Wednesday, emerging as the country’s second largest mobile operator in terms of subscribers. The combined entity will operate under the name of Robi Axiata Limited, and will serve approximately 32.2 million subscribers. This is the first significant instance of merger in Bangladesh telecom industry. Malaysian telecom giant and Robi’s parent entity Axiata now holds 68.7% controlling stake in the combined entity, while Airtel Bangladesh’s parent company Bharti holds 25%. The remaining 6.3% is held by the existing shareholder – NTT DOCOMO of Japan.
Major Currencies Exchange Rates Movement in Last Seven Days
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.
ABOUT DHAKA BANK
Dhaka Bank has truly cherished and brought into focus the heritage and history of Dhaka and Bangladesh from Mughal outpost to modern metropolis. Most of its presentation, publications, brand initiatives, delivery channels, calendars and financial manifestations bear Bank’s commitment to this attachment.