As of September, provision shortfall of the eight banks stood at Tk4,381 crore, declining from Tk 4,445 crore in June, according to the Bangladesh Bank data. Though the number of banks having provision shortfall has increased in July-September quarter, the total amount of shortfall declined slightly compared to the previous quarter, thanks to slower growth in default loans.The banks with provision shortfalls are BASIC Bank, Rupali Bank, Sonali Bank, Bangladesh Commerce Bank, National Bank, Premier Bank, Standard Bank and Bangladesh Krishi Bank. The scam-hit BASIC Bank had the highest shortfall of Tk 3,789 crore as of September, marginally up from Tk 3,651 crore in June. General provisions are balance sheet items representing funds set aside by a company as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord.
A stronger US dollar against currencies in Bangladesh’s expatriate hubs has affected the inflow of remittances from those host economies. If the devaluation of currencies, such as pound, euro, ringgit and riyal continues, the amount of remittance will go further down, according to analysts. “We have identified a devaluation of currencies as the major reason for the decline in remittance,” said a senior Bangladesh Bank official. Other reasons for the fall are — the use of informal channels to send remittance home and job or wage cuts in the Middle East following the oil price drop, the official said. Bangladesh received around $4.26 billion in remittances between July and October, down 15.42 percent from the same period a year ago, according to data from the central bank. Bangladesh’s remittance inflow has taken a hit as the US economy is slowly gaining strength amid weakening growth in China and a fragile European Union. The US Dollar Index has appreciated in value, rising 21 percent in the last two years until July 2016.The US dollar this week has climbed to its highest level in almost 14 years and major indices remained in near-record territory
Mastercard Bangladesh office recently celebrated the completion of its third year in the country. This also coincided with their celebration of 20 years of Mastercard cards being present in the country, having introduced the first branded plastic card in Bangladesh in 1997. Mastercard is the first technology company in the global payments industry to start a dedicated country office in Bangladesh back in 2013. In the span of these three years, the company has forged significant partnerships with 16 leading financial and commercial institutions – AB Bank, Bank Asia, Al-Arafah Islami Bank Ltd, Brac Bank, Dutch Bangla Bank, Eastern Bank Limited, Mutual Trust Bank Limited, National Bank Limited, Premier Bank, Prime Bank, Pubali Bank, Southeast Bank Ltd, Standard Chartered Bank, The City Bank, United Commercial Bank (UCB) and LankaBangla Finance.
AB Bank dominated the Dhaka Stock Exchange (DSE) transaction chart on Sunday for the two consecutive session while Grameenphone (GP) was the most-traded issue on the port city bourse. Five most-active shares in terms of value on the DSE were AB Bank, Quasem Drycells, National Tea Company, Bangladesh Building Systems and Mithun Knitting and Dyeing. According to statistics available with the DSE, some 10.72 million shares of AB Bank were traded, generating a turnover of above Tk 225 million, which was 3.92 per cent of the DSE’s total turnover value. The bank’s share price hovered between Tk 19.50 and Tk 21.30, before closing at Tk 21.20 on Sunday, jumping 9.28 per cent over the previous session. The bank’s (un-audited) third quarter earnings soared nearly 147 per cent year-on-year in July-September, 2016 period. Consolidated earnings per share (EPS) from July-September, 2016 stood at Tk 0.37 as against Tk 0.15 for the same period a year ago.
Development spending went up more than 2 percentage points to 13.6 percent in the first four months of fiscal 2016-17 from a year earlier but it is still lagging behind given the government’s ambitious budget. This year’s annual development programme of Tk 123,346 crore is 50.9 percent larger than last year’s, and has crossed the Tk 1 trillion ($12.7 billion) mark. In terms of amount spent, the government’s expenditure for July-October went up 44.64 percent year-on-year to Tk 16,772 crore, according to statistics from the Implementation, Monitoring & Evaluation Division of the planning ministry. The government has recently taken a number of initiatives to accelerate ADP implementation, which has been languishing in the slow lane since fiscal 2012-13. The power division spent 24.21 percent of its allocation, the local government division 20.57 percent and the primary education ministry 18.09 percent. But the bridges division spent only 7.13 percent, the railways 10.78 percent, the roads division 8.05 percent, the health ministry 6.41 percent, the education ministry 9.17 percent, the public works ministry 10.27 percent and the water resources ministry 5.22 percent. In July-October, the science and technology ministry spent 49.33 percent of its allocation, which is the highest among all ministries and divisions, followed by the disaster management and relief ministry at 36.61 percent. The legislative and parliamentary affairs division spent 36.57 percent, the economic affairs division 32.37 percent, the internal resources division 27.33 percent, the law ministry 24.84 percent and the women and children’s affairs ministry 24.50 percent. The size of the ADP is large in relation to the government’s ability to implement spending, said the World Bank. Source :http://www.thedailystar.net/business/development-spending-slightly-1317853
Govt to adjust fuel oil prices after impact assessment of last cut
The government would consider fresh adjustment in fuel oil prices after assessing the impact of the last cut on transport fare. The government wants to see the direct benefits of price cut in the transport sector,” State Minister for Power, Energy and Mineral Resources. Earlier in April this year, the government had reduced the fuel prices-long after the oil price fell to historical low in the international market. It took time to offset the losses the state-run Bangladesh Petroleum Corporation (BPC) incurred over the years due to selling the fuel oil at local market at much lower than international price.Following the April revision, the government had simultaneously announced that it would again consider further revision while the extent of the cut would depend on the benefits people got from it. The transport fares, however, do not reflect the benefit as expected. Source : http://www.thefinancialexpress-bd.com/2016/11/21/53742/Govt-to-adjust-fuel-oil-prices-after-impact-assessment-of-last-cut
Oil prices climb on expectation of OPEC-led output cut
Oil prices rose around 1.0 per cent on Monday as producer cartel OPEC moved closer to an output cut to rein in oversupply that has kept prices low for over two years. International Brent crude oil futures LCOc1 were trading at $47.35 per barrel at 0023 GMT (7.23 p.m. ET), up 49 cents, or 1.05 per cent, from their last settlement. US West Texas Intermediate (WTI) crude CLc1 was up 0.98 per cent, or 44 cents, at $46.14 a barrel. Traders said that markets were being supported by advancing plans by the Organization of the Petroleum Exporting Countries (OPEC) to cut production in a bid to prop up the market following over two years of low prices as a result of output exceeding demand. Source :http://www.thefinancialexpress-bd.com/2016/11/21/53754/Oil-prices-go-up
VAT causes split in businesses
Businesspeople stand divided over the value-added tax (VAT) dispute with small traders sticking to demands. A section of small businesses raised four-point demands, including continuation of the package VAT with its rate cut. Other members of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) play a different tune on the demand. Babosayee Oikya Forum (BOF), mainly businessmen in city’s old Dhaka, earlier had set a deadline for meeting their demand that expired Sunday. However, leaders of BOF agreed to wait until the end of this month, with their demand following assurance from the revenue authority after a meeting at the National Board of Revenue (NBR). Source :http://www.thefinancialexpress-bd.com/2016/11/21/53746/VAT-causes-split-in-businesses
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