The City Bank Ltd has informed that the Board of Directors has decided to set up a new subsidiary Company in Hong Kong and obtain money lender license. This is subject to approval from Bangladesh Bank and regulator in Hong Kong. City Bank Ltd. will inject share Capital of HKD 6,000,000.00 (HKD 1= BDT 10 approx.). The Bank will primarily focus in trade related business namely bill discounting and LC advising.
Bangladesh is a model for poverty reduction: WB chief
World Bank President Jim Yong Kim yesterday heaped praises upon Bangladesh, its people and leadership for becoming a model for poverty reduction despite being saddled with a long list of hardships. “Bangladesh has shown the world that a long list of hardships can be overcome,” Kim said at a discussion at Osmani Memorial Auditorium in Dhaka. The Economic Relations Division and the WB jointly organised the discussion titled — “End Global Poverty by 2030: Sharing Bangladesh’s Experience”. “In fact, its people have shown that innovation, commitment, setting goals and visionary leadership can accomplish feats that few dared to imagine. I believe that Bangladesh can continue to build on this record and can end extreme poverty by 2030.”
WB hints at bigger project finances beyond Padma Bridge
“We understand the importance of Padma Bridge, but we are not funding the bridge as the government has already begun its construction,” Kim said at a joint press briefing after a meeting with Finance Minister AMA Muhith at the Finance Ministry yesterday. His comment comes about four years after the global lender canceled its $1.2 billion credit in support of the $2.9 billion Padma Multipurpose Bridge project after bringing corruption allegation over the project—the largest ever physical infrastructure of Bangladesh.
Country’s apparel-export earnings from Russia, China and Chile registered a colossal growth in the first quarter of the current financial year of 2016-17 while the earnings from most of the non-traditional markets including India, Turkey, Brazil and Australia suffered a negative growth in the period. Readymade garment export to Russia in the July-September period of FY17 registered a whopping 61.7% growth to hit USD 49.1 million from USD 30.4 million in the same period of FY16, according to the Export Promotion Bureau data. Apparel export to China in the first quarter of FY17 grew by 42.4% to USD 82.7 million from USD 58.1 million in the same period of FY16. To Chile, RMG export in the July-September period of FY17 grew by USD 38.8% to USD 13.8 million from USD 9.9 million in the same period of FY16, the EPB data showed. Exporters said that RMG export to Russia registered an encouraging growth as the country reduced its import from Turkey due to political and other reasons and Bangladeshi suppliers were gaining the market share. They also said that China’s shifting from the production of basic garments to high-end products was the reason for the strong growth in Bangladeshi RMG export to China while the export to Chile witnessed a robust growth due to duty-free market access.
Bangladesh will receive higher fund support from the World Bank (WB) as it is going to raise its global non-concessional aid package by nearly 50.0% for next three years. Visiting WB Group President Jim Yong Kim announced Monday the substantial raise in development funding, as he joined Bangladesh people in celebrating poverty-alleviation successes here and the world over in recognition of the progress the country has made in this task. In the meantime, the WB chief also announced USD 1.0 billion-worth of assistance for next two years for helping Bangladesh combat child malnutrition. Officials who attended the Jim-Muhith meet told the FE that the finance minister sought extended support from the WB as the country needs huge investment in infrastructure and human capital development.
Beximco, Meghna tie up with Chinese investors for power
Local business giants Beximco and Meghna signed agreements with Chinese companies to produce a total of 3,500 megawatts of electricity in five years. The deals were part of the 13 agreements, worth USD 13.6 billion, that were signed during Chinese President Xi Jinping’s two-day visit to Dhaka. Beximco Group would produce 2,180MW, of which 1,980MW would come from coal-fired plants and 200MW from a solar power plant, according to its Executive Director M Rafiqul Islam. Beximco and its Chinese partners will invest a total of USD 3.2 billion to produce the power. The construction of the solar power plant will begin first: from March next year in Gaibandha. For the solar power plant, Beximco signed the agreement with TBEA, a Chinese private power producer. Beximco will have an 80% stake in the plant and TBEA 20%. Beximco signed an agreement with Chinese state-owned company Power China Resource to build two units of 660MW of coal-fired power plant at Banshkhali and Boalkhali in Chittagong. Meanwhile, Meghna Group inked deals with Chinese state-owned Power Construction Corporation to produce 1,320MW of electricity from two coal-fired power plants. The plants, each with generation capacity of 660MW, would be set up at Daudkandi in Comilla at a cost of USD 1.75 billion, said Mostafa Kamal, chairman of Meghna Electricity Generation Co Ltd, a unit of Meghna Group. The Chinese government will arrange the funding and the stake in the power plants will be mutually decided by the two parties. It migth take at least two years for the plants’ construction to take off, Kamal said.
Runner Automobiles, a local manufacturer, has planned a raise a fund worth BDT 1.0 billion by floating IPO (initial public offering) under the book building method to develop new models. The company will hold its road show tomorrow (October 19) to fulfill the requirement of book building method. According to company’s expansion plan, of the total IPO fund, BDT 670 million will be used to develop new models of 2 wheelers in the range of 110cc to 150cc as well as development of existing 800cc to 100cc. Some BDT 330 million will go for loan repayment and the cost of IPO processing will be met up by the remaining BDT 40 million. As per the company’s audited financial statement for the year ended on June 30, 2016, the consolidated earnings per share (EPS) has stood at above BDT 2.8, whereas the net asset value (NAV) per share was BDT 52.4. The company’s basic EPS was BDT 3.19 for the FY 2014-15 and BDT 2.8 for the FY 2013-14.
Government in a fix to finalize tax waiver facility for tech parks
The government is in a dilemma over the nature of tax holiday schemes for hi-tech park facilities, which insiders say could dampen interest of investors to invest. Officials of the Hi-Tech Park Authority said any information technology company investing in such zones will get a 10-year tax exemption facility from the date of their commercial operation. However, according to the relevant Statutory Regulatory Orders (SROs) issued by the National Board of Revenue, IT companies investing in technology parks will get 100% tax exemption only for the first three years of their operations. The SROs also say that starting from the fourth year, business units working in technology parks will get 80% tax exemption, which will come down to 20% by the tenth year through a 10% reduction in tax exemption each year. Such regulatory orders are creating some confusion, insiders noted, as the information technology companies in Bangladesh are already eligible for tax exemption facilities until 2024.
Doptor, a Kuala Lumpur-based software and IT outsourcing company, began its operations in Bangladesh yesterday. Doptor is a complete office automation system, said Masud Rana, the company’s managing director. The system will help digitise any office in the field of human recourses, accounting, pay role and enterprise management, said Rana, who is a Bangladeshi citizen and founder of the company. Sabur Khan, director of World IT and Services Alliances, launched the system at a programme at The Daily Star Centre in Dhaka. A smart card named ‘Touch n Go’ was also showcased at the programme. The card will help pay all kinds of utility bills, bus, train and taxi fares and bills at grocery shops and malls.
The booming garment trade is just a near-forgotten past, so said the garment traders in the area who now count losses, but still sticks to their business legacy. Talking to the traders, it was evident that the sale has recently plummeted which has forced some shop owners to close their shops as they fail to pay their employees. They attributed an unfavourable business environment to the decrease in sales. Abdul Aziz Morol, proprietor of MR Garments and Chistia Garments, said: “I have been in the business over the last 25 years, but never faced such a situation.” “Once we made a sale of around Tk2-Tk5 lakh a day, but those are bygone days now.” “In the past three days I could not make any sale while Tk1 lakh is spent per month on shop rent. The country is developing but people are still starving here,” narrated the trader. Keraniganj cloth business made a silent revolution in the country, and still it meets 70% of the local market demand.
For the first time in the country, the company has brought the device with Dolby Sound boxes in the local market, said a press release issued recently. The prices of the LED television has been set at Tk12,500. Since there was no 20-inch LED TV in the local market, there is demand from many customers, specially from the country’s rural areas. Walton engineers has developed the television with unique features to meet the demand, added the release. The new model incorporates power surge protection, plus lightening protection circuits on the device motherboard to protect it from the damage of thunderbolt. It features latest technology, reasonable price, world-class quality, HD display, Dolby sound boxes on either sides of the television.
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.