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 October 03 2016

Lending rates move closer to single-digit

Banking lending rates have come down closer to single-digit rate following declining deposit rates in August, according to Bangladesh Bank. Average lending rates of all banks stood at 10.24% in August 2016 against 11.51% one year ago while weighted average deposit rates of all banks came down to 5.44% in August 2016 from 6.74% a year ago. The central bank posted the figures on its website yesterday. A turnaround of declining rates does not seem likely because the banks are witnessing healthy deposit growth at existing rates to fulfill credit appetite of the economy, said an analyst. According to a senior banker, banks are slashing lending rates due to pressure from business people. He thinks the rate should be reduced to single digit. Private sector credit grew by 16.21% in August 2016 against same month last year and bank deposits grew 13.15% in July 2016 against same month one year ago.

Source: http://www.dhakatribune.com/business/2016/10/03/lending-rates-move-closer-single-digit/

Investment in savings tools hits record Tk 4,297cr in Aug

The monthly net investment in the national savings certificates and bonds hit its all-time high at Tk 4,297.20 crore in August thanks to low bank rates for deposit products.The net investment increased by 62.10 per cent in August compared with that of Tk 2,650.91 crore in the same month a year ago, according to the latest data of Directorate of National Savings. The previous highest was at Tk 3,605.06 crore in May this year. The government borrowing from the NSCs would cross the annual target within the first half of FY 2016-17 if the existing investment trend continues, he said. In the budget for FY17, the government set an annual borrowing target of Tk 19,610 crore from the NSCs. The DNS data showed that before August, the monthly highest net investment in the NSCs was Tk 3,605.06 crore in May this year.The data showed that the net investment in the savings instruments also increased to Tk 7,795.57 crore in the July-August period of FY17 compared with that of Tk 4,627.19 crore in the same period of FY16. Banks are still continuing to cut the rates of interest on their deposit products as they have been facing excess liquidity in recent years due to lower credit demand from the industrial sector amid dull business.

Source: http://www.newagebd.net/article/180/investment-in-savings-tools-hits-record-tk-4297cr-in-aug

LankaBangla to raise Tk 150cr through commercial paper

LankaBangla Finance is set to raise Tk 150 crore through commercial papers to cut its high financing costs. A commercial paper is a short-term unsecured debt instrument issued by a company to meet interim financing needs. Usually, the debt is issued at a discount from the prevailing market interest rates. The amount will be raised in one or several tranches with validity of nine months. Eastern Bank will act as the lead arranger of the issue. “LankaBangla will be the first non-bank financial institution in Bangladesh to raise funds by issuing commercial paper,” said Quamrul Islam, its head of treasury and financial institutions. The fund is being raised to meet the NBFI’s short-term needs, he said. The majority of the amount will be used to build asset portfolio, with a small portion going towards paying back high-cost borrowing. Prior to issuing the commercial paper, LankaBangla will hold an extraordinary general meeting on October 24 to change some clauses of its memorandum and articles of association to increase the authorised share capital to Tk 1,000 crore from existing Tk 300 crore

Source: http://www.thedailystar.net/business/lankabangla-raise-tk-150cr-through-commercial-paper-1293118

Government plans buyback of its securities

The government plans to buy back its securities for a better cash management, limiting interest payments from annual budget, officials said. As part of the move on prudent financial management, a tripartite meeting among senior officials of both the ministry of finance and the Bangladesh Bank (BB) and treasury heads of all the primary dealer (PD) banks was held at the central bank headquarters in Dhaka on Sunday afternoon. The ministry of finance has made the latest move against the backdrop of a surplus in balance of government account that stands at around BDT 15.0 billion. At the meeting, the PD banks proposed that the government should conduct the buyback as and when required. The treasury head of PD banks also requested the authorities concerned to consider maturity of bonds and treasury bills (T-bills) maintaining the commitment to minimum timeline. The ministry officials disclosed at the meeting that the government could issue another type of bond named ‘callable bond’ in future to bring variety of bonds. They also said the government will introduce 14-day T-bills shortly to handle short-term cash management properly.

Source: http://print.thefinancialexpress-bd.com/2016/10/03/153174

Net foreign investment in DSE jumps 61pc in nine months

Net foreign investment in stocks marked a significant jump in the first nine months of 2016 compared to the same period a year ago as foreign fund managers considered the market lucrative for long-term investment. Analysts said the favourable macroeconomic indicators coupled with easing of political tension in recent months increased the foreign investors’ confidence to pour fresh fund into stocks. Net investment by foreign investors for January to September, 2016 stood at Tk 5.87 billion, which was Tk 818 million in 2015, jumping 617 per cent over the period, according to statistics available with the Dhaka Stock Exchange (DSE). The overseas investors bought shares worth Tk 34.92 billion, while they sold stocks of Tk 29.05 billion in nine months of 2016, the DSE data showed. In 2015 for January to September, the foreign investors bought shares worth Tk 27.75 billon, while they sold shares worth Tk 26.93 billion, taking the net position at Tk 818 million.

Source: http://www.thefinancialexpress-bd.com/2016/10/02/47969/Net-foreign-investment-in-DSE-jumps-617pc-in-nine-months

Involve private sector in SDGs: analysts

The government should involve the private sector in the implementation of sustainable development goals (SDGs), as the private sector is the engine of economic growth, said businesses and trade analysts yesterday. The SDGs, a roadmap for inclusive economic growth adopted by the United Nations last year, are very much related to private sector development, they said. The private sector should also be involved in policy formulation for the SDGs. As per the roadmap, 17 goals will have to be achieved by 2030. “The total investment outlay of the 7th five-year plan is $407 billion, of which, the private sector’s share is 77.3 percent or $314 billion and the public sector’s share is 22.7 percent or $92 billion,” said Asif Ibrahim, vice-chairman of Newage Group, a leading garment maker. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) first vice-president Md Safiul Islam Mohiuddin was the special guest, while former DCCI president Asif Ibrahim presented the keynote paper.


Government gives USD 50.0 million for main phase of Rooppur power plant

The government yesterday released USD 50.0 (BDT 4.0 billion) million for the unapproved project of the Rooppur Nuclear Power Plant (main phase), official sources said. It also gave bank guarantee to the Russian joint-stock company Atomstroyexport for the fund. Rooppur plant is the first-ever nuclear power plant project in Bangladesh. Atomstroyexport is a key foreign trade engineering company of the Russian state-owned corporation Rosatom for construction of the nuclear power facilities abroad. Finance Division of Bangladesh’s Ministry of Finance released the fund from the block allocation kept for the Ministry of Science and Technology this fiscal year for construction of the project (main phase), according to a circular issued by the Ministry of Finance. According to the summary of the conditions, the main phase of the plant needs to be approved from the Planning Commission within next one month and authorities concerned will be responsible once any irregularity with the fund is committed. Bangladesh and Russia signed a financial deal of USD 11.4 billion in Moscow recently to implement the country’s first-ever nuclear power plant. Last year, the Rosatom hinted that the cost might go up to USD 10.0 billion. A couple of years ago the government had estimated that the plant would cost between USD 2.0 billion and USD 3.0 billion. Russia will provide all assistance for setting up the plant, including providing the fuel and taking back the used fuel. Bangladesh is seeking 90.0% of the project financing from Russia. The loan will be repaid in 28 years with a 10-year grace period.

Source: http://www.dhakatribune.com/business/2016/10/03/govt-gives-50m-main-phase-rooppur-power-plant/

Rice prices mark fresh rise

Prices of rice, especially of the coarse varieties, have increased further in the city markets as elsewhere in the country, which traders attributed to a substantial rise in the paddy price at the growers’ level. However, market analysts have said there is no valid reason for the hike in rice prices as the country has adequate supply of the staple. Coarse varieties of rice like Swarna and BR-11 were selling between Tk36 and Tk40 a kg at the retail level on Sunday against Tk34-Tk 35 two days back. Prices of the medium quality rice like Brridhan-28, 29, Paijam, Kajol Lata, Parija and Ratna increased by Tk2-Tk3 to Tk40-Tk45 a kg in the city kitchen markets in the last seven days. Fine varieties like Miniket, Najirshail and Kataribhog remained static maintaining higher rates. Miniket of different qualities were traded at Tk46-Tk 54 a kg and Najirshail at Tk48-Tk 57 a kg in the city.

Source: http://www.thefinancialexpress-bd.com/2016/10/03/47984/Rice-prices-mark-fresh-rise

Mobile companies pay BDT 15.0 billion revenue in FY ’16

The government has earned BDT 15.07 billion from mobile companies in the financial year 2015-16. Of the amount BDT 11.37 billion was earned as revenue sharing, BDT 405.0 million as license fee and BDT 3.28 billion as spectrum charge. State Minister of Posts, Telecommunications and Information Technology told this to the parliament on Sunday. He also informed that the government had earned BDT 13.69 billion from different mobile companies in the financial year 2014-15. Of the amount BDT 10.16 billion was earned as revenue sharing, BDT 405.0 million as license fee and BDT 3.12 billion as spectrum charge.

Source: http://print.thefinancialexpress-bd.com/2016/10/03/153151

Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
Dow Jones Industrial Average18,308.15↑164.70↑0.91%
Nikkei 22516,633.37↑183.53↑1.12%
FTSE 1006,899.33↓20.09↓0.29%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$48.05↓0.19↓0.39%
Crude Oil (Brent)*$50.04↓0.15↓0.30%
Gold Spot*$1,315.77↓0.10↓0.01%

Major Currencies Exchange Rates Movement in Last Seven Days






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