The central bank yesterday cautioned nine new banks over aggressive lending and rising nonperforming loans. Bangladesh Bank Governor Fazle Kabir chaired the meeting attended by the chief executives of these banks, which came into the market in 2013. “We have asked these banks to strictly follow the risk management guidelines to improve their performance,” said Abu Hena Mohammad Razee Hassan, deputy governor of BB. The loans of these nine banks are concentrated on the textile and garment sector in Dhaka and Chittagong, which need to be diversified, he added. “Also, these banks have been asked to reduce their NPL.” The NPL of the nine banks, referred to as the fourth generation lenders, increased by over 43 percent to Tk 561 crore at the end of September, from Tk 392 crore three months ago. At the end of December last year, the NPL of these banks was less than Tk 45 crore. Furthermore, the NPL of two new banks has grown significantly in recent months — it was 7.24 percent for Farmers Bank and 4.14 percent for NRB Commercial — in the July-September quarter, according to an official of the central bank.
The government yesterday released a list of 141 tax-card recipients for fiscal 2015-16 for their exemplary compliance. The list has been expanded this year under the amended, comprehensive tax card policy after many taxpayers were left out of the recognition despite regularly furnishing the state coffers with sizeable sums. Of the 141 names, 76 are individuals, including Transcom Group Chairman Latifur Rahman and Planning Minister AHM Mustafa Kamal, who are getting the tax cards as senior citizens, according to the notice issued by the Internal Resources Division of the finance ministry.
National Board of Revenue (NBR) misses Q1 revenue target by BDT 31.8 billion
Revenue collection by the National Board of Revenue fell short of target by BDT 31.8 billion in the first quarter of the current fiscal year mainly due to a slower growth in the collection of income tax and customs duty in the period. According to the NBR statistics presented to the finance ministry, taxmen managed to collect BDT 354.4 billion in the July-September period of FY17 against the collection target of BDT 386.3 billion for the period. Though all three wings — income tax, customs duty and value-added tax — of the revenue board faced shortfall in the July-September period of the fiscal year, the overall revenue collection posted a moderate growth at 13.9% in the period compared with that of the same period of last fiscal year. The overall business activities including the government’s development budget expenditure would also get momentum in the second half of the fiscal year, they said. The customs wing faced the biggest deficit in collection — BDT 17.6 billion — in the three months as it collected BDT 107.0 billion in import and export duties in the period against the target of BDT 124.6 billion. The income tax collection faced the second highest shortfall — BDT 12.4 billion — in the July-September period followed by VAT collection by BDT 1.8 billion. The income tax collection stood at BDT 106.9 billion in the period against the target of BDT 119.3 billion, according to the NBR data. The VAT wing managed to collect BDT 140.5 billion in the three months against the target of BDT 142.3 billion for the period, the data showed. In the July-September period, customs duty collection grew by 15.7% followed by income tax by 9.8% and VAT by 9.3%.
Asian Development Bank (ADB) approves USD 167.0 million for energy infrastructure
The Asian Development Bank yesterday said it would lend USD 167.0 million to Bangladesh to improve production efficiency at the Titas gas field and expand transmission infrastructure. The Asian Infrastructure Investment Bank or AIIB is expected to lend an additional USD 60.0 million, which will be managed by the ADB. It will be the second project to be co-financed by the ADB and the AIIB. The project will install seven wellhead gas compressors to increase pumping pressure and ensure steady extraction at Titas gas field, Bangladesh’s largest gas field, Manila-based ADB said in a statement yesterday. The project will also boost gas transmission by building 181.0 kilometers of transmission pipeline from Chittagong to Bakhrabad, southeast of Dhaka. The USD 453.0 million project is expected to be completed in 2021. It will substitute the use of other fossil fuels, thereby reducing over 700,000 tons of carbon dioxide emission a year over the ensuing 10 years. The Bangladesh government will provide USD 226.0 million for the project. Bangladesh’s economy is growing fast. But domestic natural gas supplies cannot keep pace with soaring demand for energy, resulting in a rising dependence on oil and diesel-based power generation. With gas reserves depleting, the government is trying to meet the supply shortage by importing liquefied natural gas. The ADB has provided Bangladesh with USD 17.2 billion in loans and USD 244.6 million for technical assistance projects since 1973.
The fast-expanding pharmaceuticals sector fetched nearly BDT 10.0 billion in the first 10 months of the current calendar year. Local drug-makers exceeded their export target of USD 80.0 million for the fiscal year (FY) 2015-16 and they are on course to go past the current fiscal year’s export target of USD 95.0 million too, he said. The waiver allows the Least Developed Countries (LDCs) a transition period of 17 years to comply with and implement the provisions of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement of the World Trade Organisation (WTO). Bangladesh’s estimated size of BDT 160.0 billion medicine market is marked by the local manufacturers’ dominance with about 20-25 of them exporting their products to over hundred countries, using the LDC privilege. EPB statistics show the drug-makers exported medicine items worth USD 82.1 million against their export target of USD 80.0 million during the FY 2015-16. This year, too, the pharma sector is maintaining steady growth in terms of export earnings which stood at USD 27.4 million during the July-October session.
Omera Petroleum to set up LPG terminal at Mirsarai
Bangladesh Economic Zones Authority (BEZA) Monday signed a memorandum of understanding (MoU) with Omera Petroleum Limited to establish a LPG Import Terminal & Reforming Process Unit in the Mirsarai Economic Zone (EZ). According to the MoU, Omera will implement the project on 200.0 acres of land, said a press release. Secretary of BEZA executive board Mohammed Ayub and chief executive officer of Omera Petroleum Md. Tipu Sultan signed the agreement on behalf of their respective organisations at the BEZA office in the city. Speaking on the occasion as chief guest, BAZA executive chairman Paban Chowdhury said BAZA is developing the economic zone on 30,000 acres of land to make it a planned and well facilitated industrial area. Omera Petroleum CEO Tipu Sultan said the project with an investment of about BDT 13.0 billion is expected to create employment opportunities for around 5,000 people.
Gazprom wants two more wells to drill at double the Bapex cost
Russian Gazprom has proposed to drill two more gas wells at Bhola at a cost of USD 40.0 million, more than double the cost state-run Bapex is interest to do, said officials. Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) proposed to drill the wells at a cost of USD 19.9 million, including customs duty (CD) and value added tax (VAT). In contrast, Gazprom enjoys waiver on such CD and VAT. The proposals of both the firms await final approval from the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR), a senior MPEMR official told the FE. The MPEMR has invited Gazprom for a discussion on the issue next week. Officials said Gazprom entered late, bypassing the tender procedure, when the state-run company was all set to initiate the drilling by January 2017 — it prepared almost everything like approach roads and purchase of necessary materials, said a senior official at Bapex.
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.