TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts November 21, 2017

AB Bank shares suddenly in demand despite losses in Q3

AB Bank’s shares were suddenly in demand yesterday although the private commercial lender incurred losses in the third quarter. The bank was the most traded shares on the Dhaka Stock Exchange yesterday with securities valued nearly Tk 86 crore changing hands. AB was one of the top gainers as it rose 6.72 percent. The bank advanced Tk 1.6 to close at Tk 25.40, the highest since April 4, according to the DSE. The bank is trying to mobilise capital through issuing rights share which may have a positive impact on its stocks, said a senior executive of AB Bank. The board of the bank decided to issue two rights shares against three existing ordinary shares and is expected to get the approval from the Bangladesh Securities and Exchange Commission (BSEC).


Managing the banking sector fault lines

Reforms over the past two decades or so have greatly improved the quantity and quality of banking services in Bangladesh. The urban areas are well served by a competitive banking sector with convenient access and a range of banking products, including electronic banking. The rural areas are increasingly coming under the spread of commercial banking, supplemented by the large growth of microfinance institutions. A growing number of the unbanked rural population is being serviced through mobile financial services. Interest rates are falling sharply and many borrowers with good track record are getting loans at single digit interest rate. But, there is still a long way to go, especially to service the remaining large unbanked population and to meet the financing requirements of the host of micro and small enterprises that do not have access to banking sector credit.

Source: http://www.thedailystar.net/business/managing-the-banking-sector-fault-lines-1494187

Banks urge BB to give multiple payment switches

Banks yesterday urged the central bank to allow them to route their card transactions through multiple switches instead of a single platform: the National Payment Switch of Bangladesh (NPSB). The call was made at a meeting between Bangladesh Bank Deputy Governor SM Moniruzzaman and the Association of Bankers Bangladesh (ABB), a platform for chief executives of the country’s scheduled banks. The BB on August 24 instructed all banks to route their card transactions through the NPSB from the new year — a move that was met with trepidation by banks and payment brands alike because of the risks it presents. Anis A Khan, chairman of the ABB, welcomed the BB move to make card transactions cheaper by routing them through the NPSB.

Source: http://www.thedailystar.net/business/banks-urge-bb-give-multiple-payment-switches-1494226

Bangladesh Bank (BB) gives Lafarge 90 days to remit BDT 5040 million

Bangladesh Bank has kept the valuation of Holcim shares unchanged at BDT 57,202 — 47% lower than the price proposed by Lafarge — in its final approval, casting a pall of uncertainty on the proposed merger of the two cement giants. The central bank has given Lafarge 90 days more to remit the money to Amsterdam-based Holderfin, whose shares in Holcim Cement Bangladesh it is acquiring. As per the approval given back in September 17, Lafarge can remit a total of BDT 5047.8 million for 88,244 shares of Holcim within one month, meaning the process was supposed to be completed by October 17. But Lafarge could not do it. Lafarge had valued each share of Holcim at BDT 106 thousand and it sought permission from the BB to remit BDT 9360 million. Earlier in October, Lafarge asked the BB to review its decision, according to a position paper of the company. Bangladesh Bank said in a statement that the remittance of full amount was very important, otherwise, there is every possibility that this deal will fail. In December last year, Lafarge Surma signed an agreement with Amsterdam-based Holderfin to purchase its holdings of Holcim Cement Bangladesh for BDT 9360 million (USD117 million). Each of Holcim’s 88,244 shares was valued at USD1,325.88 (BDT 106 thousand). The central bank has set the share price of Holcim in line with the international valuation method.

Source: http://www.thedailystar.net/business/bb-gives-lafarge-90-days-remit-tk-504cr-1494235

Mobile-based financial transactions mark fall

Fast-growing mobile-based financial transactions (MFS) took a knock, dropping around 5.04%, quarter on quarter, during the third quartile of this year. •. Sources concerned, however, attributed the downturn largely to ‘seasonal effects’. According to the figures from Bangladesh Bank, a total of 475.67 million mobile-based transactions took place in the country during the July-September period of this year, the total value of which was 771.01 billion. This represents a decline by around BDT 41 billion in the total amount of MFS transactions from the second quarter of this year, when a total of BDT 812.01 billion was transacted through MFS channels. Apart from the amount of transacted, the actual number of mobile transactions also declined slightly during the same period, as it was found that the total number of MFS transactions dropped by around 1.93% during the third quarter. When contacted, industry-insiders claimed the trend is largely an aftereffect of two Eids, as the religious festivals usually see a sudden month-to-month fluctuation in MFS transactions. It was found that one of major declines in MFS transaction came in July, immediately after the Eid-ul-Fitr which was observed in the last week of June.

Source: http://today.thefinancialexpress.com.bd/first-page/mobile-based-financial-transactions-mark-fall-1511199616

Annual Development Program (ADP) spending rises 42% in July-October

Development spending rose 42% year-on-year to BDT 238.15 billion in the first four months of the current fiscal year on the back of increased use of foreign aid. The spending by the ministries and divisions between July and October was 14.51% of the total allocation for the annual development program, according to figures from the Implementation Monitoring and Evaluation Division. At this point last fiscal year, BDT 167,720 million was spent, which was 13.60% of the total allocation. The government is contributing BDT 955,150 million to the ADP from its own accounts. Of which, 12.10% was spent in the four-month period. The implementation rate was 14.32% in the same period last fiscal year, meaning this year’s outlay fell by more than 2% age points. •. Of the 15 large ministries and divisions that account for 80.83% of the allocation combined, five spent higher than the average. The government plans to spend about USD7 billion in foreign aid in the current fiscal year. The use of foreign aid has been higher both in terms of implementation rate and amount. In the first four months, aid spending stood at BDT 111,190 million, almost treble the amount of BDT 48,610 million from the same period a year earlier.

Source: http://www.thedailystar.net/business/adp-spending-rises-42pc-jul-oct-1494250

Eateries, shops largely evade ECR use

Many fast-food shops, bakeries, restaurants and retail outlets in Dhaka avoid issuing electronic cash register (ECR)-generated pay-slips to evade VAT payment, as monitors look on, sources said. Lack of awareness among the consumers and some VAT officials’ connivance with errant businesses are cited as major causes of increased failure to comply with the ECR-use rules. The government made use of ECR mandatory for some 11 categories of businesses in 2009 but compliance could not be ensured during the eight years. Some businesses are in a dilemma over use of their existing ECR machines as, according to government’s latest decision, they will have to replace those with new ones from the next fiscal year (FY), 2017-18. As the existing ECR machines are not interconnected with NBR’s VAT online server, the VAT officials cannot monitor the ECR-generated transactions properly, officials said. Responding to such allegations, Bangladesh Shop Owners Association president Md Helaluddin agreed that there is connivance between VAT officials and VAT-evading businesses. The NBR will have to devise proper mechanisms to ensure compliance on use of ECR, he said. He suggested that assistant commissioner-level officials should deal with the monitoring of ECR use.

Source: https://thefinancialexpress.com.bd/economy/bangladesh/eateries-shops-largely-evade-ecr-use-1511202889

Final notices on four mobile firms over unpaid VAT

The revenue board issued Monday final demand notices to the four mobile multinationals for clearing unpaid VAT worth BDT 8.83 billion in second phase of outstanding SIM replacement tax within 90 days. Officials said the Large Taxpayers Unit (LTU) under the VAT Wing of the National Board of Revenue (NBR) claimed the amount on account of SIM-replacement tax due for a period between July 2012 and June 2015.bank. The mobile-phone companies–Grameenphone, Robi Axiata, Banglalink and Airtel–have been given three months to pay off the overdue VAT or value-added tax. Meanwhile, legal battles are going on over the first-phase demand for the SIM-replacement tax worth BDT 20.48 billion for the period from July 2007 to December 2011.


Subscribers’ complaints against GP, Robi pile up at DNCRP

Subscribers’ allegations of ‘cheating’ against mobile companies, especially Grameenphone and Robi, have piled up at the Directorate of National Consumer Rights Protection, said officials of the directorate on Monday. Since June this year, the consumer rights watchdog received about 600 allegations, mostly related to ‘cheating’ through ‘false’ advertisements of internet package offers against GP and Robi, they said. The directorate received 3,089 complaints in total from consumers of different sectors and services. The information came from the DNCRP director general Md Shafiqul Islam Laskar at the 16th meeting of national consumer rights protection council on Monday. ‘A court order obtained by one of the mobile operators against DNCRP dealing with such allegations is preventing us from investigating into the complaints,’ Shafiq told the council meeting presided over by commerce minister Tofail Ahmed. ‘We will fight it in the court,’ said Tofail Ahmed. According to the minister, about 130 million people of the country are mobile phone users and 60 million of them subscribe to internet services. The allegations made against the companies are largely related to clients receiving far less data than advertised in the mobile operators’ internet packages.

Source: http://www.newagebd.net/article/28786/subscribers-complaints-against-gp-robi-pile-up-at-dncrp

Summit Power International strengthens board

Summit Power International (SPI) announced the appointment of three new Non-Executive Independent Directors to strengthen the strategic leadership and corporate governance of SPI, said a statement. The three Independent Directors who joined SPI Board are Abdullah Tarmugi, Lim Hwee Hua, and Tang Kin Fei. Abdullah Tarmugi will chair the Nominating Committee and the Remuneration Committee. Lim Hwee Hua will chair the Audit Committee. Tang Kin Fei will chair the Strategy and Investment Committee. With the addition of these new Directors, the Board of SPI has eight Directors, three of whom are independent.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/summit-power-international-strengthens-board-1511195379

Bangladeshi firms slow in innovation

Bangladesh’s firms and institutions are lagging behind their counterparts in India, Vietnam and Sri Lanka when it comes to invention and protection of intellectual property owing to inadequate research, investment and awareness. The Department of Patents, Designs & Trademarks (DPDT) granted patents for 106 inventions in 2016 out of 344 applications submitted by local and foreign firms. Of the approved, only seven were local patents. In 2015, the state-run intellectual property rights authority approved 101 patent applications, of which 11 were local. In the same year, 1,388 products or inventions were patented in Vietnam and 6,022 in India, according to the World Intellectual Property Organisation. The number of patents was also higher in Sri Lanka.

Source: http://www.thedailystar.net/business/bangladeshi-firms-slow-innovation-1494253

Beximco purchases LPG carrier

Beximco Petroleum has recently purchased a liquefied petroleum gas (LPG) carrier, the first in Bangladesh, the company said in a statement yesterday. With a capacity of 2,700 MT, Bexpetro 1 will be flying the national flag on international waters. It will be the first Bangladeshi ship to directly procure LPG at source, reads the statement. Bexpetro 1 is expected to arrive in Bangladesh with its first shipment of LPG by the first week of December. “This marks a major milestone not only for LPG operators in Bangladesh but also for the nation at large as this paves the way for a more cost-effective and efficient LPG supply chain,” said the statement. With two more vessels of similar capacity already in the pipeline, this is a stepping stone for Beximco Petroleum’s strategic vision of becoming the country’s premier LPG operator.

Source: http://www.thedailystar.net/business/beximco-purchases-lpg-carrier-1494208

Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
DSEX6,319.12↑ 12.17↑ 0.19%
DJIA23,430.33↑ 72.09↑ 0.31%
FTSE1007389.46↑ 8.78↑ 0.39%
Nikkei 22522,488.38↑ 226.62↑ 1.02%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$56.50↑ 0.08↑ 0.14%
Crude Oil (Brent)*$62.32↑ 0.10↑ 0.16%
Gold Spot*$12,080.10↑ 3.18↑ 0.25%

Major Currencies Exchange Rates Movement in Last Seven Days

Exchange Rates
USD 1BDT 83.22
GBP 1BDT 110.24
INR 1BDT 1.28





Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited