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 24, 2019

Net use Cost escalation feared

The cost of internet services at the consumer end might go up by 40 per cent unless the government reduces VAT on its value-chain services, according to industry insiders. The overall cost has gone up by 36 per cent as the rebate provisions have been dropped and 15 per cent VAT on value chains have been re-introduced in the new VAT law. VAT on internet services for consumers is 5.0 per cent. It is 15 per cent for value-chain services in each of the three layers. The new VAT and Supplementary Duty Act-2012 has scrapped the provision for obtaining rebate, if the VAT rate is lower than the standard rate of 15 per cent on any services. To air concerns over the matter, Internet service providers [ISPs] sit with the National Board of Revenue [NBR] today. In the current fiscal budget, NBR re-imposed 15-per cent VAT on value chains-International Terrestrial Cable, International Internet Gateway, and Nationwide Telecommunication Transmission Network. ISPs are not able to claim rebate of the VAT paid at a rate of 15 per cent in each value chain layer.

Source: https://today.thefinancialexpress.com.bd/first-page/net-use-cost-escalation-feared-1571853195

 Brokers seek Tk 100b Lifeline

Stock brokers are seeking a Tk 100 billion fund from the government to inject new life into the moribund capital market. According to the intermediaries, they are set to submit their proposal to the Finance Minister today seeking the fund as loans. Dhaka Bank Securities and EBL Securities are among the 20 signatories to the proposal to be submitted to the government. All market intermediaries such as stock brokers, Merchant Banks, and asset management companies will be allowed to avail the loan facility. The government can also ask for collaterals against its loans to be provided to the market intermediaries. Asked about the strategy for disbursing the fund, Mr Ali said the Bangladesh Bank will decide on how the money will be disbursed. The Central Bank can engage one or more representatives to disburse and recover the loans. Meanwhile, the state-run Investment Corporation of Bangladesh has also sought a fund of Tk 50 billion from the government to support the market. The state-run corporation has recently submitted its proposal to the finance minister.

Source: https://today.thefinancialexpress.com.bd/first-page/brokers-seek-tk-100b-lifeline-1571853280

 IDCOL to mobilize $250m for efficient RMG Sector

Infrastructure Development Company Limited [IDCOL] plans to mobilize US$ 250 million to help make the country’s garment sector energy efficient. Of the total, $150 million will be sought from the Green Climate Fund [GCF] and the rest $100 million will be co-financed by the financial institutions including Banks. It was revealed at a dissemination and stakeholder consultation workshop organized by the IDCOL, a state-run financing company, at a city hotel. IMED secretary Abul Mansur Md Faizullah pointed out that Bangladesh still needs increasing its capacity to get access to the GCF as the process is quite complex. The IDCOL conducted a number of studies under the GCF programme titled “Promoting private sector investment through large-scale adoption of energy saving technologies and equipment for garment sector of Bangladesh”. Concessional loan will be sought from the GCF while local Banks and financial institutions including Southeast Bank, BRAC Bank, IDLC Finance, and City Bank will co-finance the initiative. The garment sector borrowers will also make equity contributions in the project.

Source: https://today.thefinancialexpress.com.bd/trade-market/idcol-plans-to-mobilise-250m-to-make-rmg-sector-energy-efficient-1571852134

 US Cotton Traders eye growing Market Share in BD

US cotton traders seek to raise their market share in Bangladesh by 33 per cent in the next five years, buoyed by the growing textile industry, especially the spinning sector, which largely depends on imported cotton. They also urged the Bangladesh government to scrap the age-old fumigation rules on the import of US cotton to save both time and money and to increase the flow of quality cotton supply. The US has grabbed 11 per cent of Bangladesh’s total cotton import last year and the share actually increased three times since 2015, according to executive director of Cotton Council International [CCI] Bruce A Atherley. Bangladesh imported 7,85,000 bales of cotton from the US in 2018, up from 2,26,000 bales in 2015. Mr Atherley is leading a high-level US cotton industry delegation that came to Dhaka on the occasion of fourth Bangladesh Cotton Day. Bangladesh, a market of 2.0 million cotton bales, is very important for the US traders due to the spectacular growth of its textile industry over the last 20 years. Bangladesh imported 8.2 million bales of cotton in 2018, according to Bangladesh Textile Mills Association. Some 37.06 per cent of the total cotton bales was imported from Africa, 26.12 per cent from India, 11.35 per cent from the Commonwealth of Independent States [CIS] countries, 11.14 per cent from the US, 4.65 per cent from Australia, and 9.65 per cent from other countries. The US industry traders noted that the US can supply more reliable and high quality cotton to Bangladesh spinners.

Source: https://today.thefinancialexpress.com.bd/trade-market/us-cotton-traders-eye-growing-market-share-in-bangladesh-1571852229

 Aromatic Rice Exports rises

Fragrant rice exports from Bangladesh have gradually been increasing thanks to rising demand for such item in the globe, according to traders. The exports could be increased significantly if the government provides necessary incentives like that of competitor countries. However, Bangladesh exported above 22,400 tonnes of rice worth US$ 17.7 million in the last Financial Year [FY’19] of which 100 per cent were fragrant rice, according to the Export Promotion Bureau [EPB] and the Bangladesh Rice Exporters Association [BREA]. It was 11,000 tonnes worth US$ 7.13 million in FY’18, EPB data showed. Exports of fragrant rice increased by 149 per cent in FY’19 than that of FY’18 [in value]. The local traders exported aromatic rice to UAE, KSA, Australia, Brunei Darussalam, Bhutan, Canada, Switzerland, UK, France, Germany, Finland, Greece, Hong Kong, Ireland, Italy, Jordan, Japan, Lebanon, Maldives Nepal, New Zealand, Myanmar, Mauritius, Malaysia, Kuwait, Liberia and South Africa.

Source: https://today.thefinancialexpress.com.bd/last-page/bb-updates-beftn-system-1571768162

 Govt readies answer to ILO Complaints

The government has finalized a draft response to the complaints against it over the violation of the International Labour Organization [ILO] conventions, according to officials. A number of countries filed the complaints at the International Labour Conference [ILC] held in Geneva in June this year. Labor and law ministries and stakeholders have jointly finalized the response that includes the recent progress in amending the labor law. The law conforms to the ILO conventions to avert the situation for forming a commission of inquiry against the country. At the concluding ILC session, worker delegates of Italy, Pakistan, South Africa, Brazil and Japan suggesting forming such a commission. Bangladesh was not following ILO convention 87 on freedom of association and right to organize, convention 98 on right to bargain collectively and convention 81 on labor inspection. EPZs workers are more protected and facilitated as well as getting more benefits under existing EPZ laws, rules and regulations and provisions, the draft explained.

Source: https://today.thefinancialexpress.com.bd/trade-market/govt-readies-answer-to-ilo-complaints-1571852159

 Two bodies to work on closing gap with IFRS

The country’s audit watchdog has formed two working groups to set accounting rules in line with the International Financial Reporting Standards [IFRS] to further standardize the accounting practices here. The Financial Reporting Council [FRC] Bangladesh, an independent oversight body, has formed the groups as companies deviate from the accounting standards in preparing their financial statements. Local accountants prepare financial statements by applying different methods of accounting, guided by their ill-motives in many cases. Many follow the direct cash flow method of accounting with some others going by the indirect method. The regulators concerned like the Bangladesh Bank and the Bangladesh Securities and Exchange Commission [BSEC] instruct the companies time to time to include or exclude some financial matters that impact the financial statements. Such instructions also go against the IFRS. The two groups would work on three IFRS principles-9, 15 and 16.The IFRS 9 deals with the accounting for financial instruments. The IFRS 15 provides guidance on accounting for revenue from contracts with customers. The IFRS 16 provides guidance on accounting for leases.

Source: https://today.thefinancialexpress.com.bd/first-page/two-bodies-to-work-on-closing-gap-with-ifrs-1571853392

 DSE Turnover hits Five-month Low

The turnover on the Dhaka bourse came down to Tk 2.71 billion on Wednesday, hitting five months low, as investors were reluctant to make fresh investment in stocks. Turnover, a crucial indicator of the market, dipped further by 6.0 per cent over previous day’s mark of Tk 2.88 billion. It was the lowest single-day transaction since May 15, this year, when the turnover totaled a record low of Tk 2.56 billion. According to Market analysts, institutional investors mostly followed ‘wait-and-see’ approach amid liquidity crunch while small investors were not confident enough to inject fresh fund, taking the market turnover to five months low. The institutional investors are in hands-off position as they fear of the liquidity pressure in coming days amid soaring interest rates in the Banking sector. The market index ended marginally higher after sharp decline in the previous day as bargain hunters showed their interest in fundamentally sound stocks. DSEX, the prime index of the Dhaka Stock Exchange, went up by 17.94 points or 0.38 per cent to settle at 4,726, after losing 53 points in the previous day. The DSE Shariah Index also gained 3.83 points to close at 1,084. However, the DS30 index, comprising blue chips, fell 1.54 points to finish at 1,659. Among the major sectors, engineering posted the highest gain of 1.40 per cent, followed by power with 0.80 per cent, telecom 0.30 per cent and Banking 0.30 per cent. The Non-Bank Financial Institutions and food sectors lost 1.50 per cent and 0.60 per cent respectively.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/dse-turnover-hits-five-month-low-1571851589

Soft launching of EXIM Finance [HK]

Export Import Bank of Bangladesh Limited softly launched its wholly owned subsidiary EXIM Finance [Hong Kong] Limited recently in a program at Holiday Inn Golden Mile Hotel, Kowloon, Hong Kong, according to a statement. EXIM Finance [Hong Kong] Limited will provide LC advice, LC confirmation, export bill collection, financing against accepted import and export bills, discounting of export bills and related services.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/soft-launching-of-exim-finance-hk-1571851631

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DSEX4726.62043↑ 17.94↑ 0.38
↑ 45.85 ↑ 0.17%
FTSE1007,260.74↑ 48.25 ↑ 0.67%
Nikkei 22522,769.58 ↑144.20 ↑ 0.64%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 55.49 ↑ 0.48 ↑ 0.86%
Crude Oil (Brent)$ 60.78 ↓ 0.39 ↓ 0.64%
Gold Spot$1,493.22 ↑ 1.10 ↑ 0.07%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 83.0862
GBP 1BDT 107.000
EUR 1BDT 92.4146
INR 1BDT 1.17489





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