Export earnings from service sector dropped more than 6.0% to USD 488.0 million in the first two months of the current fiscal year, according to the Export Promotion Bureau data released yesterday. The earnings amounted to USD 531.48 million in the same period last year. However, the total export earnings of the country stood at USD 6.32 billion with a 6.88% rise during the period, which was USD 5.9 billion in the same period a year earlier. As per the EPB data, the country earned USD 189.0 million from goods and services export, which was the highest, USD 107.14 million from while telecommunication, computer and information services, USD 66.2 million transportation and USD 73.33 million from business services. In the last fiscal year, service sector earnings were not included in the export earnings figure. Earlier, EPB has taken initiative to include it in the country’s total exports value. The aim of the move is to include service sector in total export figure and give a real picture of the country’s overall earnings from export. According to Bangladesh Bank data, in the last fiscal year, the country earned USD 3.2 billion from service sector exports with 12.9% rise from the previous year’s USD 2.83 billion. The total export volume in the year was USD 34.25 billion, growing 9.8% from a year earlier. In FY2014-15, the total earning amounted to USD 31.2 billion. After the inclusion, the total export volume in the last fiscal year stood at USD 37.3 billion.
IDLC Finance’s net profit rose 17.0% year-on-year to BDT 1.3 billion in January-September, mainly driven by strong growth in SME lending. In the first nine months of this year, IDLC acquired 6,277 new customers, while the customer assets portfolio grew by 10% to BDT 5.4 billion. The growth in customer assets was driven primarily by lending in the SME sector, which also experienced 17.0% growth during the period. SME loans comprise 45.0% of the total loan book of IDLC, up from 42% at the beginning of the year. Corporate and consumer financing, two other major business segments of the company, also experienced notable growth. “The focus remains firmly on continuing the good performance for the rest of the year and also improving our portfolio quality, which experienced a minor dent in the last quarter with a slightly increased NPL ratio of 3.22% compared to 3.06% at the end of December last year,” said Arif Khan, managing director of IDLC Finance, disclosing the third quarter earnings at a function in Dhaka yesterday. The company’s operating profit increased 7.0% year-on-year and stood at BDT 2.3 billion at the end of September.
The government has restored the operating license of Standard Insurance Limited more than 15 months after its revoking by the insurance regulator. The suspension was imposed following company’s failure to comply with a regulatory requirement — mandatory re-insurance coverage against three policies valued BDT 463.0 million. The Bank and Financial Institutions Division (BFID) in an order issued Monday said that the directive of the Insurance Development and Regulatory Authority (IDRA) cancelling the license of the company will now stand null and void. The DSE news, however, suggested that the license was finally cancelled on November 15 last year. It added that the government has accepted the company’s appeal and restored the license. The value of the coverage was BDT 490.0 million, but later it was increased by BDT 110.0 million, making a total coverage of BDT 600.0 million. The insurance company kept BDT 5.0 million as retention money. The company also did similar violation in case of Tulgaon Fashions in 2013 – it did not reinsure BDT 8.4 million.
Net inflow of Foreign Direct Investment (FDI) from India increased by 6.3 per cent in the last financial year (fiscal year 2015-2016), according to the latest statistics of Bangladesh Bank. Net FDI from India stood at $88 million in the FY16 which was $82.8 million in FY15. The central bank statistics also showed that gross inflow of FDI from India was $102.54 million in the last fiscal year while disinvestment was $14.54 million. Thus the net inflow stood at $88 million.
Bangladesh’s total export to the UK may shrink by around US$ 330 million, if the country loses its quota-free access to the British market in the aftermath of Brexit, experts warned on Tuesday. The fall in UK export may reduce Bangladesh’s total export income by almost 1.0 per cent and trim the country’s GDP by 0.1 per cent, they said. The forecasts came from a lecture titled ‘What does BREXIT mean for Bangladesh and other Developing Countries’ in the city. South Asian Network on Economic Modelling (SANEM) organised the event. Economists present in the session pointed out that Britain, being a member state of European Union, is currently offering Generalized System of Preferences (GSP) facility to Bangladesh.
India’s state-run Life Insurance Corporation launched Bangladesh operations yesterday as part of its plan to widen its international footprint. The company formed a joint venture with Strategic Equity Management Ltd (SEML) and Mutual Trust Bank for its Bangladesh operations, the Indian High Commission in Dhaka said in a statement. “The corporation has a vision to expand its life Insurance business throughout the country,” said the statement. LIC has introduced five insurance schemes in Bangladesh and plans to bring in more products with attractive features in future. The new company’s authorized capital is BDT 1.0 billion while paid-up capital BDT 600.0 million, according to LIC Bangladesh’s website. Mutual Trust Bank has bought a 3 percent stake in LIC’s Bangladesh venture, while SEML, a fund management company, bought 7 percent shares.
Services export fetches USD 497.0 million in Jul-Aug
The country fetched USD 497.0 million from export of various types of services during the first two months of current fiscal year. Service is a new sector incorporated in the official overseas sale data for the first time, The sub-sectors included maintenance and repair services, transportation, travel, construction services, insurance services, financial services, charges for use of intellectual property, telecommunications, computer and information services, computer services, other business services, entertainment, cultural and recreational services and government services, the Export Promotion Bureau (EPB) showed. Earnings, however, witnessed an 8.06% negative growth during the July-August period of 2016-17 fiscal compared to the corresponding period of last fiscal, according to the central bank data. The country earned USD 540.9 million during the same period of fiscal 2015-16, it showed.
Bangladeshi jute and jute goods may be subject to 25-30 percent duty upon entry to the Indian market if the local exporters are found guilty of dumping. The development comes after the Directorate General of Anti-Dumping and Allied Duties or DGAD under India’s commerce ministry concluded its probe into the matter last week, said an official of Bangladesh Tariff Commission. The report is likely to be disclosed next week. “I heard that a 25 percent to 30 percent anti-dumping duty was recommended in the report,” said a jute exporter who has been doing business with his Indian partners for many years now.
Bangladesh’s first ever merger proposal of two mobile phone operators — Robi and Airtel — has got the final approval from the telecom regulator, reports BSS. Bangladesh Telecommunication Regulatory Commission (BTRC) in a meeting Tuesday, cleared the proposal terming it a “positive move” for the telecom industry of the country. Talking to the news agency, BTRC Chairman Dr Shahjahan Mahmood said they have approved the merger proposal as it is in line with the consent of the High Court. Terming the merger as good, the chairman hoped it would bring positive change to the industry. Replying to the queries regarding payment and spectrum, Dr Mahmood said they made some observations, but those are “minor”. With the final approval of the BTRC, way of amalgamation of both the operators has been cleared.
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