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 05 2016

Pvt sector credit growth rises to 16.21pc in Aug

The private sector credit growth in the country increased to 16.21 per cent in August year-on-year compared with that of 15.97 per cent in July as banks are now disbursing significant amount of consumer and farm loans to sustain their profitability. The growth, however, had decreased in July, the first month of this fiscal year, after maintaining a 10-month upward trend, according to the BB data. The private sector credit growth had posted a four-year high at 16.56 per cent in the fiscal year of 2015-16. The central bank has set the private sector credit growth target at 16.60 per cent for the July-December period of FY17. Credit flow to the private sector stood at Tk 6,71,924.60 crore in August 2016 against Tk 5,78,176.90 crore in the same month of 2015. It was Tk 6,65,311.80 crore in July 2016 against Tk 5,73,668.70 crore in July 2015. A number of banks had recently gone for aggressive banking by disbursing consumer loans at low rates of interest to ensure profitability, which also played a significant role in pushing up the private sector credit growth. Outstanding amount of banks’ consumer loans almost doubled in two years, surpassing Tk 50,000 crore as of March 31, 2016, the BB data showed. The outstanding consumer loan figure increased to Tk 50,508 crore as of March 31, 2016 from Tk 46,008 crore as of March 31, 2015. The outstanding amount of consumer loans was Tk 27,512 crore as of March 31, 2014. Besides, as of late, the businesspeople have started borrowing from the banks to expand their businesses after a prolonged lull. In the first two months of FY17, the farm loan disbursement registered a 6.29-per cent growth compared with that in the same period of FY16, the BB data showed. Banks handed out Tk 1,814.34 crore in farm loans in the July-August period of FY17 against Tk 1,706.96 crore in the same period of FY16. The BB data showed that the year-on-year credit growth in the overall domestic sector also increased to 12.94 per cent in August from 12.24 per cent in July. The total credit in the domestic sector stood at Tk 8,01,358.50 crore as of August 2016 against Tk 7,09,551.70 crore as of August 2015. It was Tk 7,97,968.40 crore as of July this year against Tk 7,10,934.50 crore as of July last year.

Source: http://www.newagebd.net/article/288/pvt-sector-credit-growth-rises-to-1621pc-in-aug

Pound dips below Tk 100 amid global rout

The exchange rate of the British currency pound sterling against the Bangladeshi currency taka slumped to below Tk 100 in last two days in line with the global trend following the British prime minister Theresa May’s announcement on Sunday that her government would start the process of leaving the European Union within the next six months. The British currency also lost around Tk 17 in last two months in line with the global trend of weak pound due to the British referendum to leave the EU. Bangladesh Bank data showed that before Tuesday the lowest level of pound against the taka was in June 2010 when its average value was around Tk 100-Tk 101. After that it hit the highest level at Tk 133.63 in February 2012. Data of different private and state-run commercial banks showed that selling rate of pound came down to Tk 101-Tk 102 on Tuesday from around Tk 102-Tk 103 on Monday while buying rate fell to Tk 97.35-Tk 98.07 from Tk 98.83-Tk 98.20. At Sonali Bank, the pound was purchased at Tk 97.35 on Tuesday, while the currency was purchased at Tk 98.20 on Monday. At Eastern Bank, GBP was sold at Tk 102.68 and bought at Tk 98.07 on Tuesday, while the currency was sold at Tk 103.45 and bought at Tk 98.83 on Monday. The pound slumped to a 31-year low against the dollar Tuesday on concerns over the timing and terms of Britain’s planned exit from the European Union.

Source: http://www.newagebd.net/article/287/pound-dips-below-tk-100-amid-global-rout#sthash.bzzIxyyo.dpuf

Inflation creeps up in Sep

Inflation increased 16 basis points to 5.3 percent last month, mainly because of price rise in food items, especially of staple rice. Food inflation rose 80 basis points to 5.1 percent in September, according to Bangladesh Bureau of Statistics. However, non-food inflation declined 81 basis points to 6.19 percent. The government has targeted to keep the inflation rate within 5.8 percent this fiscal year, and the last month’s data showed that it was still below the government target. Although there was pressure on the Bangladesh Bank to relax the monetary policy for increasing investment, it took a balanced policy by bumping up the private sector credit growth and keeping the policy rates unchanged. The risks of expansionary monetary policy were dramatically illustrated during fiscal 2010-11, when broad money growth averaged 22 percent per year and private credit growth accelerated to 25 percent per year. Although the liquidity growth targets in the current monetary policy are not as expansionary as in fiscal 2010-11, they are on the high side. The evidence suggests that the higher growth of liquidity is unlikely to help private investment or gross domestic product growth but may simply feed into inflation. The monetary policy does not adequately address existing inflationary pressures and the continued appreciation of the real exchange rate.

http://www newagebd.net/article/268/inflation-edges-up-slightly

Key index crosses 4,700-mark on prime bourse

Stocks finished modestly higher Tuesday with key index of the premier bourse crossing the 4,700-mark after nearly 12 months as investors went on late hour buying spree amid optimism. Market insiders said favourable macro-economic indicators as well as steady capital market scenario lured the optimistic investors to take position on large-cap stocks, taking the benchmark index of the major bourse to one year high level. The market started with a positive note followed by a consolidated mid-session, which witnessed a buying spree in the closing hour, ultimately benchmark index of the premier bourse finished at one year high level. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 17.65 points or 0.37 per cent to finish at one year high at 4,708.78 points. It is the highest level of DSEX since October 14, 2015, when it was 4,716.08. The stockbroker noted that the rally on the day comes as investors continued to keep close eye on earnings declaration by companies and renewed interest of foreign investors in capital market investments. The two other indices also closed marginally higher. The DS30 comprising blue chips advanced 6.24 points or 0.35 per cent to settle at 1,784.92. The DSE Shariah Index (DSES) gained 5.32 points or 0.47 per cent to close at 1,129.36. The stockbroker noted that conservative GDP growth forecast at 6.80 per cent for fiscal year 2016-17 by the World Bank in its ‘World Development Update 2015′ did not create any negative impact in the investors’ mind. Turnover, the important indicator of the market, however, dropped and the total turnover on the DSE stood at Tk 5.62 billion, which was 5.86 per cent lower than the previous day’s turnover of Tk 5.97 billion.

Source: http://www.thefinancialexpress-bd.com/2016/10/04/48210/Key-index-crosses-4,700-mark-on-prime-bourse

Q1 ADP spend climbs 9.0%

The government spent 9.0% of its Annual Development Program outlay in the first quarter of the current financial year (FY) 2016-17. The spending rate from the ADP fund in the current fiscal is 2.0% points higher than that of the same period last financial year (FY2016), official data show. After the Executive Committee of the National Economic Council (ECNEC) meeting, planning minister AHM Mustafa Kamal told reporters the implementing agencies spent BDT 107 billion in July-September period of the current fiscal. In the current FY2017, the government framed a BDT 1.23 trillion ADP to implement nearly 1,200 development projects. In July-September period of the last FY2016, the government agencies spent BDT 68.0 billion from its total BDT 1.0 trillion ADP outlay. The planning minister said the ECNEC Tuesday approved eight development projects at a combined cost of BDT 34.88 billion in its meeting at the Planning Commission.


GE to supply gas turbine to Ghorashal power plant

GE has been awarded a contract by China Energy Engineering Group -Guangdong Power Engineering Co Ltd to supply gas turbine for repowering unit 4 of Ghorashal power plant at Narsingdi. In line with the government’s power generation expansion plans to add around 12 GW electricity by 2018, the repowering of the plant of Bangladesh Power Development Board is an important milestone. The plant will result in an addition of more than 200 MW of clean energy output and an efficiency increase of more than 20 percent, according to the statement. The repowering of unit 4 will result in an addition of more than 400 MW of clean energy to the national grid of Bangladesh. The existing gas-fired boiler of unit 4 at Ghorashal plant will be substituted with GE’s advanced 9F.03 AGP gas turbine with advanced gas path (AGP) technology, including advisory services for installation, performance testing and two years of operational spares during warranty period. The repowering will add 25 years to the overall lifetime of the power plant, increase its efficiency from the existing 31 percent to more than 53 percent and improve the overall output of the plant to 409MW, from the current 170MW.

Source: http://www.thedailystar.net/business/ge-supply-gas-turbine-ghorashal-power-plant-1294162

Summit Power’s move to raise Tk 1.91 billion

The securities’ regulator has approved the proposal of Summit Power, a listed company to raise capital worth above Tk 1.91 billion as part of completing the company’s amalgamation with three other companies, officials said. The approval came Tuesday at a meeting of the Bangladesh Securities and Exchange Commission (BSEC). The company’s share trading has remained suspended since August 28 last for some non-compliances including the company’s failure to seek the regulatory consent to raise capital. The company also failed to disburse shares to the shareholders of other companies by the date set for the shareholders of the SPPCL, a listed company. The company’s share trading is likely to resume soon on completion of disbursing the shares issued for amalgamation. Earlier, the High Court approved the scheme of Summit Power’s amalgamation with three other companies such as Summit Purbanchol Power Company Ltd (SPPCL), Summit Uttaranchol Power Company Ltd (SUPCL) and Summit Narayanganj Power Ltd (SNPL). Among the companies, the SPPC is also listed with both the bourses of the country. As per the amalgamation scheme, the Summit Power will raise a capital worth above Tk 1.91 billion by disbursing above 191.87 million shares of Tk 10 among the shareholders of SPPCL, SUPCL and SNPL. The shareholders of SPPCL, SUPCL and SNPL will receive 1.309, 1.668 and 1.475 shares respectively against one share of Tk 10 each in their respective companies.

Source: http://www.thefinancialexpress-bd.com/2016/10/04/48208/BSEC-approves-Summit-Power%27s-move-to-raise-Tk-1.91-billion

LPG coming as car fuel sans settling CNG fate

The government is introducing liquefied petroleum gas (LPG) for fuelling automobiles without considering the fate of compressed natural gas (CNG), the currently most-consumed car fuel, according to industry-insiders. Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) is currently receiving applications from private entrepreneurs for license to install LPG stations and conversion workshops. The government feels that the increased use of LPG, also known as auto-gas, which would be imported from international market, would help ease the mounting demand on local gas. Currently about 60 % of auto-vehicles are run by CNG. The EMRD has already received applications for some 1,000 LPG stations, mostly from fresh ones having no experience in LPG dealing. Currently, around a dozen auto-gas re-fuelling stations are in operation-all run by private-sector entrepreneurs and the prices regulated by the private sector itself.

Source: http://www.thefinancialexpress-bd.com/2016/10/05/48240/LPG-coming-as-car-fuel-sans-settling-CNG-fate

Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
DSEX4708.79↑17.65↑ 0.36%
Dow Jones Industrial Average18,168.45↓85.4↓0.47%
Nikkei 22516,821.06↑85.41↑0.51%
FTSE 1007,074.34↑90.82↑1.3%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$49.15↑0.46↑0.46%
Crude Oil (Brent)*$51.30↑0.43↑0.84%
Gold Spot*$1,274.66↑6.22↑0.49%

Major Currencies Exchange Rates Movement in Last Seven Days






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