BB frames guidelines to help cut NPLs
The central bank has introduced guidelines on the Internal Credit Risk Rating System (ICRRS), aiming to reduce the volume of classified loans through maintaining credit risk exposure within acceptable levels. The guidelines along with a model will be a valuable addition to the credit risk management tools, which will help the banks develop and maintain a better-quality credit portfolio. Some 20 sub-sectors under four key sectors have been included in the model considering financial risks and efficiency of the borrow management. The existing Risk Grading System (RGS) along with ICRRS and the model will be functional simultaneously until June 30, 2019. But the banks must implement the ICRRS along with the mode from July 01, 2019. Since exposure to credit risk continues to be the leading source of problems in banks, they should have a keen awareness of the need to identify, measure, monitor and control credit risk as well as to determine that they hold adequate capital against these risks and they are adequately compensated for risks incurred, according to the ICRRS.
Cut economic disparity to achieve SDGs by 2030
The government should take steps to reduce economic disparity to achieve sustainable development goals by 2030. Sustainable development aims at reducing economic disparity. Corruption is the main barrier for the country’s economic development and the government will be able to achieve more growth only if corruption is cut. Corruption is interrupting the development and widening the disparity. They spoke at a two-day international conference on “Pathways to a sustainable economy: Vision 2041 Agenda for Bangladesh” organised by the PKSF at its conference room in Dhaka. The growth of the country’s gross domestic product was 4 percent in 1990, which improved to 7.86 percent in 2018. At present, 12 percent people live below the poverty line in the United States while for Bangladesh it is 22 percent. Three sessions were held on the first day of the conference where three papers were presented by local and international experts.
Coordinated farming project improves living condition of grassroots people
Krishi Gobeshona Foundation has been working for improving the living standard of the grassroots people in the haor region of Sunamganj. In this connection, a team of Sylhet Agriculture Univeristy (SAU) researchers including Prof Dr Abul Kashem, Prof Dr Abu Bakar Siddique, Prof Dr Md Shahidul Islam, Prof Jashim Uddin Ahmed and Prof Dr Md Abdul Aziz have been working since 2015. They are working under the Coordinated Farming Management Project with 157 grassroots families in Noagaon, Rabbanigaon and Bahadurpur villages in the district. They are trying to invent some better farming techniques for both the Kharif and Rabi seasons. The project cost has been fixed at Tk18 million. Besides, they are imparted with some short training courses and given inputs under the project. He further said the farmers now produce vegetables for family consumption and sale. Their earning is rising gradually. On the other hand, some of the farmers took training on fish cultivation cases while some others are engaged in rearing cattle heads and poultry birds.
BRAC Bank launches agent banking operation
BRAC Bank Ltd on Tuesday commenced its agent banking operation to take banking solutions to underserved population living in remote parts of the country. The bank has started its agent banking with 10 outlets on the day covering all eight divisions of the country and set a target to increase the number to over 500 in next one year. Speaking at the programme, Mr Abed said agent banking was introduced in Latin America 20 to 25 years back while Bangladesh has been experiencing such banking for last four to five years. We (BRAC Bank) wanted to start agent banking through BRAC’s (NGO) 2,000 micro finance branches across the country, right after a circular issued by the central bank on agent banking few years ago. Their agent banking with biometric verification and digital capabilities will bring convenience to the people with 24/7 banking anytime and anywhere. BRAC Bank agent banking will offer these services to the customers – account opening, cash deposit and withdrawal, deposit plus scheme (DPS), fixed deposit receipt (FDR), fund transfer, foreign remittance, utility bills and insurance premium payment, loan disbursement and repayment, government allowance receipt, debit card and cheque book requisition, and school fee payment. It is the owner of an agent banking outlet who conducts banking transactions on behalf of a bank.
Pacific Jeans investing $100m to diversify products
Top denim maker Pacific Jeans is spending $100 million to set up two new factories in Chattogram in two years with the view to diversifying product base. One of the units, Pacific Knitex, will produce fabrics, while the other, Pacific Casuals, will make activewear, which would help the company broaden its product offerings from denim. Activewear is not a traditional garment product. Rather, it is a specialised product that Bangladesh is yet to explore, which exported denim products worth $400 million in fiscal 2017-18. Asia-Pacific, which lags behind the US and Europe in use of activewear, is also expected to witness significant growth from 2018 to 2024 due to an increase in awareness of health and wellness and a rise in participation of youth population in sports activities. Pacific Jeans, founded by his father M Nasir Uddin in a small scale in the Chattogram Export Processing Zone (CEPZ) in 1994, exports premium denim products. The price ranges from $50 to $180 a piece. It employs 26,000 people in its five factories located in the CEPZ. The new facilities will create another 5,000 jobs. Bangladesh has set the standard, no matter how big or small a factory is.
ONE Bank Limited launched an OK wallet service
ONE Bank Limited launched an OK wallet service to make mobile financial service proposition fast, more secure and more convenient for Bank’s core banking customers and mobile banking customers. This OK Wallet will cater to wide range of services including cash deposit and withdrawal, in-store shopping by QR code, utility bill payment, money transfer, mobile recharge, inward remittance, insurance premium, salary disbursement, and e-commerce payment. Customers who have bank accounts or mobile banking accounts can use the OK wallet. OK account can be opened and topped up at ONE Bank branches and agent points and cash can be withdrawn at branches, OBL ATMs and agent points.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 66.41||↑0.23||↑0.35%|
|Crude Oil (Brent)||$ 76.33||↑0.42||↑0.55%|
|Gold Spot||$ 1,218.08||↓4.85||↓0.40%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 85.2945|
|GBP 1||BDT 108.3672|
|EUR 1||BDT 96.7329|
|INR 1||BDT 1.1522|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.