Three more banks coming up soon according to the Finance Minister
Finance Minister said that the government is going to give license for establishing three more banks, ruling out any mess in the country’s banking sector. Defending the government move for allowing more banks in business, the Finance Minister said there is still huge market for banks as a good portion of people still remained unbanked. He also said that there is a provision in the banking law for merger. So, if any one bank fails, it will go for merger according to the Finance Minister. Two of the three proposed banks are Bengal Bank and People’s Islami Bank. The name of the third one, and its owner, was not known yet. A ruling-party lawmaker and owner of Bengal Group of Industries has moved for the Bengal Bank while a Chittagong-based businessman, MA Kashem, pursues for People’s Islami Bank.
Farmers Bank board reconstituted
The board of directors of the Farmers Bank Limited (FBL) has been reconstituted with the election of the new chairman and vice-chairman of the trouble-hit fourth generation private commercial bank (PCB). Mohammad Masud and Maruf Alam have elected as new chairman and vice-chairman respectively of the PCB, officials of the central bank said Monday night. Dr. Muhiuddin Khan Alamgir and Mahabubul Haque Chisty (Babul Chisty) had already resigned from the post of directors of the bank, they added. The board has also reconstituted executive, risk management and audit committees of the bank. Meanwhile, the central bank of Bangladesh has issued a show cause notice against the Managing Director and Chief Executive Officer (CEO) of the FBL AKM Shameem asking him to explain why he will not be removed from his post. The BB issued the show cause notice on Sunday and asked Mr. Shameem to explain his positive within seven working days.
BB asks for removal of Farmers Bank MD
Bangladesh Bank has directed scam-hit Farmers Bank to remove its managing director AKM Shamim over unrelenting disbursement of loans despite a liquidity crisis in the bank. The central bank in a letter issued to the bank board on Sunday night asked the board to explain, according to article 46 of the bank act, why Shamim would not be removed in seven days, said BB officials. They said that the BB asked for Shamim’s removal on two grounds — one is the bank management’s failure in managing liquidity and the other is issuance of large sums of loans violating the central bank’s order of not issuing further loans because of its ongoing liquidity crisis. The private bank, which was set up only four years ago, has been facing an acute liquidity crisis for the last few months because of its rampant disbursement of loans, rising defaulted loans and failure to draw depositors.
Rising bad loans alarming for economy: International Chamber of Commerce Bangladesh (ICCB)
Businesses and experts on Sunday said that continuous increase in bad loans was alarming for the entire economy as the banks have been faced with capital deficit in providing credit to the good borrowers and new entrepreneurs. Mahbubur Rahman, President of the ICCB said that the defaulters were not being punished as the bankruptcy courts are out of commission and this encouraged people to become debt dodgers. The ICC claimed that the government has been providing recapitalization funds to the nationalized banks to meet their capital adequacy ratio set by the Bangladesh Bank. •. According to the Bangladesh Bank report, non-performing loans have surged over BDT 800 billion but the figure would have been much higher if bad loans had not been written off, which is around BDT 450 billion. The President of ICCB also said that banks do not have enough technical expertise to properly analyze the loan files.
StanChart honours agriculture icons
Standard Chartered Bank Bangladesh honoured best performing individuals and institutions of the country’s agriculture sector through the fourth Agrow Award. This year, the awards were given in seven categories, the bank said in a statement yesterday. AHM Mustafa Kamal, planning minister, handed over the awards at a ceremony at the Westin Hotel in Dhaka on Sunday. Md Shar Ali Saddar and Md Haroon Chowdhury won the Farmer of the Year award (male) while Anju Sarkar achieved the Farmer of the Year award (female). The award for the “Farmer of the year – subsistence to market” category went to Md Nurul Haq and his group. Bangladesh Rice Research Institute received the “Best agricultural organisation in research and innovation” award while ACI Crop Care and Public Health became the “Best agricultural organisation in support and execution”. BaSE Bangladesh received the “Best Agricultural Exporter” award while Soilsafe by Kranti Associates turned up as the winner in the “Best use of technology in agriculture” category. The winners and honourable mentions in each category received a crest and a certificate. Each winners of the Farmer of the Year awards received Tk 5 lakh as prize money while the honourable mention won Tk 50,000.
NRB Commercial Bank opens 56th branch in Narayanganj
NRB Commercial Bank Limited has opened its 56th branch on Monday at Dubai Plaza in Araihazar upazila of Narayanganj district.
MTB launches Co-branded credit card for CCCL
Mutual Trust Bank Limited (MTB) and Cadet College Club Limited (CCCL) have jointly launched a co-branded credit card for Cadet College Club Limited (CCCL) members. They started the Visa Signature and MasterCard World Credit Card for the permanent members of the CCCL, says a press release.
Govt may cut renewal fees for insurers
Finance Minister AMA Muhith yesterday assured insurance companies of reducing their renewal fees in a bid to revitalise the sector. The assurance came at a seminar on “Protecting the Poor: Emerging Micro Insurance Market in Bangladesh and South Asia” organised by Bangladesh Insurance Association at Dhaka Club. Insurance companies have to renew licences with the Insurance Development and Regulatory Authority (IDRA) every year, paying Tk 3.5 for every Tk 1,000 premium. They demanded complete withdrawal of the fees. Muhith said NGOs would have to take insurance policies from insurance companies against their microcredit, and the government would provide incentives for insurance companies against the launch of innovative products. He said, now non-government organisations (NGOs) themselves provide an insurance facility though they are not authorised to do so. He found it wrong that NGOs do not provide insurance claims of relatives following a client’s death.
Doubts over meeting Padma Bridge construction deadline
The construction work of the Padma Bridge may not be complete by the extended deadline of November 2018, according to a recent government monitoring report. In the report, the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning said it ‘seems’ the project will finish eight months behind even after the deadline extension. The main construction of the bridge started in November 2014 following many complexities relating to funding and site selections. The river training and construction of link roads began earlier. In the first revision, the project was extended up to the end of 2015, and in the second revision, the target to finish the work was set at November 2018 with a total estimated cost of around Tk 288 billion. The first span between two piers of the bridge was installed on September 30.
513 RMG factories inspected under national initiative face closure
Some 513 or one-third of the readymade garment (RMG) factories inspected under the national initiative (NI) have faced closure as they might have failed to compete in the market and comply with the required standards, including safety compliance, officials said. Under the NI, some 1,549 garment factories, which remained outside the purview of Accord and Alliance inspections, have been inspected for structural, fire and electrical integrity under a joint initiative by the government and the International Labour Organisation (ILO).
BTRC to allow a subscriber to own maximum 15 SIMs
Bangladesh Telecommunication Regulatory Commission is set to allow a mobile subscriber to own up to fifteen SIMs cards instead of existing five SIM or RIM cards against a NID number, The limit would be applicable for both pre-paid and post-paid customers. Corporate customers, however, will get exemption from the regulatory embargo as imposition of such ceiling might create problem for their business. Since the capping on SIM registration against per NID came into force on 29 September, registration of almost half of the prepaid SIM have been rejected on the ground as almost all the SIM cards of a household were registered by one person, resulting in non-implementation of the directive. On December 16, 2016, verification of SIM cards with the biometric method started in the country and the process was completed on May 31, 2017. Before the commencement of verification, in an initial assessment of one hundred thousand SIMs of all six mobile operators, the government found that 75 % of the SIM cards had faulty registrations
Zaheen Spinning develops power capacity
Zaheen Spinning has installed an electric substation having capacity of 1,000KW/1MW to run their company’s operation without interruption. According to a disclosure published on DSE (Dhaka Stock Exchange) website, the Zaheen Spinning has set up a 33/11/0.415KV, 4MVA electric substation for sanctioned load of 3,000KW/3MW with a captive capacity of 1,000KW/1MW. The company’s disclosure also said the installation of Bus Bar Trunking (BBT) System in the said Electric Substation has also been completed. The board of directors of the company has decided to run the mill by electricity from December 18, 2017 subject to availability of power supply by REB which will reduce the risk of interruption in production. The company recently opened a new unit and it will also come under the coverage of electric substation.
National Tubes to set up galvanizing plant
The board of directors of National Tubes has decided to establish a galvanizing plant to provide service of galvanizing for different types of towers. The state-run engineering sector company will establish the galvanising plant in eight mills of National Tubes for Towers, Fittings and I-Beam of PDB, REB, DESA and DESCO and to provide service of galvanizing for different types of towers for mobile companies. The company expects approximately BDT 70 million per year will be attainable by galvanizing.
Compliant firms to get fast customs clearance
Customs authorities are set to provide compliant and trusted businesses a status that would help them fast-track their import and export consignments under a dedicated channel, officials said. The Authorized Economic Operator (AEO) status will give scope to trustworthy firms to bring import consignments to their factory premises with minimal checks at ports, said a senior official of the National Board of Revenue. Likewise, exporters with the status of AEO will be able to ship their consignments in the fastest possible time. The AEO programme is expected to kick off on a pilot basis by December and on a full-fledged basis from next year, said the first secretary for customs modernization and international affairs at the NBR. AEO status is an internationally recognized quality mark that indicates the business’s role in the international supply chain to be secure, and that their customs controls and procedures are efficient and compliant. The World Customs Organization has introduced the system with the view to enhancing the security of the international supply chain and facilitating faster trade. Manufacturers, importers, exporters, carriers, clearing and forwarding agents, warehouse keepers and distributors will be eligible for the status subject to fulfilling some conditions. AEOs will be able to save time and cost because of quicker clearance of export and import goods and the new system will help them take their goods to consumers very quickly. Most importantly, if a country has mutual recognition arrangements with other countries, its AEOs will enjoy similar benefits in those countries.
Unleashing the power of IoT
The Internet of Things (IoT) is changing the objects surrounding us significantly to enrich our lives. From household appliances to industrial machines, the IoT is bringing more ‘things’ into the digital fold every day. Collectively, this is likely to make the IoT a multi-trillion dollar industry in the near future. According to a global survey conducted by PwC, business leaders worldwide are investing in building their IoT capabilities significantly. The IoT represents the convergence of advances in miniaturisation, wireless connectivity, increased data storage capacity, increased battery life, powerful solar cells and sensors. Sensors detect and measure changes in position, temperature, light, etc., and they are necessary to turn billions of objects into data-generating ‘things’ that can report on their status, and, in some cases, interact with their environment.
Local and Global Stock Indices
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||6,302.46||↓ 34.42||↓ 0.54%|
|DJIA||23,580.78||↑ 22.79||↑ 0.10%|
|FTSE100||7,383.9||↓ 25.74||↓ 0.35%|
|Nikkei 225||22,480.28||↓ 15.71||↓ 0.07%|
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)*||$57.73||↓ 0.38||↓ 0.65%|
|Crude Oil (Brent)*||$63.62||↓ 0.22||↓ 0.34%|
|Gold Spot*||$1,294.20||↓ 0.32||↓ 0.02%|
Major Currencies Exchange Rates Movement in Last Seven Days
|USD 1||BDT 82.23|
|GBP 1||BDT 119.53|
|EUR 1||BDT 97.89|
|INR 1||BDT 1.27|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.