Muhammad Awal Khan has joined Bangladesh Krishi Bank (BKB) as the new managing director recently, according to a statement. Prior to this, he was the managing director of Rajshahi Krishi Unnayan Bank (RAKUB). He started his banking career at Bangladesh Krishi Bank in 1982. During his career, he held the position of Deputy Managing Director of Agrani Bank Ltd. He also served as General Manager in Sonali Bank, Rajshahi Krishi Unnayan Bank and Bangladesh Krishi Bank. He earned post graduation from the department of Finance of Dhaka University in 1979.
IDLC Finance to raise Tk 2.51 billion through rights offer
IDLC Finance will raise a fund worth above Tk 2.51 billion through rights offer to strengthen the company’s capital base. The Bangladesh Securities and Exchange Commission (BSEC) Tuesday approved the rights offer of the IDLC Finance. As per the BSEC approval, the IDLC Finance will issue one rights share against two existing shares at an offer price of Tk 20, including a premium of Tk 10 for each share. The company will issue above 125.68 million shares and will raise a capital worth above Tk 2.51 billion to accelerate the activities regarding SME, consumer and corporate lending portfolio. As per the audited financial statement for the year 2015, the company’s earnings per share (EPS) and net asset value (NAV) per share are Tk 5.81 and Tk 30.97 respectively. The City Bank Capital Resources is working as issue manager for the rights offer of IDLC Finance. At Tuesday’s meeting, the securities’ regulator also approved Tk 5.0 billion non-convertible subordinate bond to be issued by the Mutual Trust Bank (MTB). The securities’ regulator also imposed a penalty of Tk 0.2 million on HAC Securities for breaching securities rules regarding margin rules.
Stocks finished higher on Tuesday with the key index of the country’s premier bourse hitting the high of more than 12 months, powered by the investors’ buying spree, especially on the financial stocks. Analysts said the market finished on a gaining streak being supported by financial stocks as favorable macro-economic indicators coupled with prevailing upbeat trend of the market lured the investors to take fresh position. The bourses opened with an upward note and continued the upturn till the end of the session without any major fluctuation – ultimately closing above 28 points higher. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 28.80 points or 0.61 per cent to finish at 4,750.21, which was the highest point since October 13, 2015 when the index was 4,779.66. The DSE Shariah Index (DSES) advanced 2.22 points or 0.19 per cent to close at 1,129.68. However, the DS30 comprising the blue-chips fell 1.10 points or 0.06 per cent to settle at 1,764.20. Turnover, the important indicator of the market, also improved to Tk 6.56 billion, which was 7.54 per cent higher than the previous day’s turnover of Tk 6.10 billion. It was also the highest transaction since September 29 when the turnover reached Tk 6.82 billion. Banking sector emerged as the turnover leader, holding 15.4 per cent of the day’s total turnover value, followed by textiles 13.2 per cent and engineering 12.6 per cent.
Govt approves three projects to upgrade power distribution
The government has undertaken three projects of Tk 20,183 crore for improving power distribution system in the country as part of its plans to take electricity to all houses by 2021. China and the Asian Development Bank will finance 67 percent of the cost of the projects, Planning Minister said after the Executive Committee of the National Economic Council approved the projects. The government has a target to bring all houses under electricity coverage by 2021, and the three projects would allow the government to reach the goal two years ahead of time. At present, about 70 percent of the houses have electricity. One of the projects involves strengthening the power grid network at a cost of Tk 13,703 crore. The project will be implemented on a government-to- government arrangement with China contributing Tk 9,707 crore. This is one of the 28 projects for which preliminary agreements were signed during Chinese President Xi Jinping’s visit to Bangladesh last month. The cabinet committee on economic affairs has primarily nominated a Chinese company for implementing the project. Under the project, 100-kilometre 400kV new transmission lines, 330km new 230kV transmission lines, and 334km 132kV new transmission lines will be set up. The existing 225km 132kV transmission lines will also be rehabilitated under the project. Besides, new power sub-stations will be set up and existing sub-stations rehabilitated. Under the two other projects, the power distribution system will be improved in eight divisions at a cost of Tk 6,481 crore. The ADB will provide Tk 3,914 crore. The two projects will bring about 9.5 lakh new subscribers under the national grid network, according to a proposal of the planning ministry. Some 11,965km Compiled by: Research & Development Unit, Dhaka Bank Limited 11kV or lower voltage lines will be set up. Besides, the capacity of about 39,000km existing lines will be enhanced. Two of the projects will be implemented by 2019 and the other by 2021.
Local Government Initiative on Climate Change (LoGIC), a project aiming to make 0.2 million of the most vulnerable houses in Bangladesh better prepared to adapt to climate change, was launched in Dhaka on Tuesday. Started initially with a budget of US $ 20 million, the project will be implemented in the next four years in 7 most climate vulnerable districts of the country. Sweden, European Union (EU), United Nations Development Programme (UNDP), United Nations Capital Development Fund (UNCDF) and the Government of Bangladesh will provide the initial $ 20m fund which will be spent in four years for reducing risks of damages caused by disasters and climate change in the 7 most vulnerable districts and prepare them to recover readily from adversity. Of the initial $ 20m fund, Sweden will provide around $ 9.25m, the EU approximately $ 8,57m, the UNDP and the UNCDF will give $200,000 each, and the Bangladesh government to provide BDT 60 million (Tk 6 crore).
State-run Bangladesh Petroleum Corporation (BPC) will export 170,000 barrels of naphtha again in December to international buyers as local demand has outpaced supply. The BPC will ship the naphtha on free on board (FOB) basis from the Chittagong port meaning that the importers would have to get the naphtha delivered from the port. The state-run corporation would not have any responsibility for transporting naphtha to the buyers’ end. The BPC usually gets naphtha as a by-product from Eastern Refinery Ltd, which is one of its several wholly-owned subsidiary companies, and sell to different privately-owned petrochemical companies. The delivery of naphtha to the bid winner will take place on December 22-24 from Chittagong. The BPC last awarded a similar-sized parcel of the naphtha for delivery over November 17-19 to Swiss Singapore Overseas Enterprises Pte Ltd on FOB basis from Chittagong. Swiss Singapore had offered discount of US$0.89 a barrel to the Mean of Platts Singapore (MOPS) naphtha assessment meaning the price was below that of international market by US$0.89 a barrel.
Cotton consumption in Bangladesh is expected to rise 4.91 percent year-on- year to 6.4 million bales this year due to higher demand from spinners and garment makers, according to the US Department of Agriculture. The cotton year begins on August 1 and ends on July 31. Bangladesh is the largest cotton importer in the world at present, as China stopped importing the fibre in recent years. Bangladesh meets its demand for cotton through imports, as the country does not produce the white fibre locally. Cotton traded between 70.5 and 72.5 cents a pound in international markets yesterday. This cotton year, more than 430 spinning mills in Bangladesh will consume 6.4 million bales of cotton, according to USDA. Bangladesh spends more than $3 billion to import cotton a year. One bale equals 480 pounds or 218kg. Cotton consumption by Vietnam, a major competitor to Bangladesh in the global apparel business, will also increase this year for higher export of garments. In 2015-16, Bangladesh consumed 6.1 million bales of cotton. The import will also increase by 1.6 percent to 6.3 million bales in 2016-17 from 6.1 million bales last year, according to data from USDA. India has become the biggest supplier of cotton for Bangladesh for competitive prices, quality and geographical proximity, as the country imports 50 percent of its total annual demand of the fibre from India.
A US multinational online transport network company headquartered in San Francisco, California, Uber offers app-based taxi service allowing customers with smartphones to place a trip request in about 450 cities in 74 countries. The taxi service, which has been available in Dhaka for the past several weeks, was formally launched yesterday in partnership with the country’s largest telecom company, Grameenphone. Once a person signs up for Uber’s free app, he or she can call a car by opening the app and giving information about their location and pay the fare in cash or credit card. Uber does not own any cars. It acts like a middleman between customers and cab drivers. It has made the task of booking a cab easier. Any car owner can become drivers after getting registered with valid documents, national identity card and a photograph.
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