A dozen banks pay 22pc of corporate tax in FY ’18
Some 12 commercial banks paid 21.75 per cent of the total corporate tax collected by the Large Taxpayer Unit (LTU) belonging to the income tax wing of the National Board of Revenue (NBR) during the fiscal year (FY), 2017-18. Of the banks, Islami Bank Bangladesh Limited, Standard Chartered Bank Ltd, HSBC, Sonali Bank, Agrani Bank and Southeast Bank are among the top payers. Islami Bank paid the highest amount of Tk 6.11 billion, followed by Standard Chartered Bank, Tk 5.20 billion last fiscal year. During FY ’18, the LTU collected Tk 168.70 billion, mostly corporate tax, achieving 22 per cent per cent growth over that of the previous year. Of the total collection,12 banks paid Tk 36.40 billion last year. HSBC paid Tk 3.42 billion, Sonali paid Tk 2.99 billion, Agrani Tk 2.77 billion, Southeast Tk 2.63 billion, Pubali Tk 2.61 billion, Dutch Bangla Tk 2.12 billion, Al Arafah Tk 2.23 billion, United Commercial Tk 2.20 billion, BRAC Bank Tk 2.10 billion and National Tk 2.02 billion in corporate tax last year. Officials said the unit has nominated names of corporate taxpayers as per Tax card Policy-2010 (amended). The tax payment data has been compiled on the basis of tax return information submitted in FY 2017-18. The revenue board will hand over tax cards to the highest taxpayers, both corporate and individuals, on November 12 next on occasion of Tax Fair-2018.
Indian fabric makers eye Bangladesh
Indian manufacturers look to capture a bigger share of the fabric market in Bangladesh as the country has already shown its strength in the global readymade garment supply chain. Bangladesh, the second largest garment exporter worldwide, largely relies on India, apart from China, for garments raw materials. Currently, Bangladesh imports fabric worth $7 billion a year to run its garment sector. Of them, fabric worth more than $2 billion come from India and $5 billion from China, according to industry people. Around 1,200 foreign companies, including some 92 textiles related firms, took part in the four-day fair. Ayma Creations is a Gujarat-based manufacturer of suiting fabric and exporter to Gulf countries. And Pradip Marathe, head of customer service of the company, believes that Rawalwasia Yarn will get a good market share as it manufactures high quality products. Babita Singh, proprietor of Ashok Vatika, a Kolkata-based fashion house, said she is looking for partners to set up joint venture in Bangladesh. Ashok Vatika will provide technical support along with fabric.
UCB adopts special strategy to cut NPLs, increase profit
United Commercial Bank (UCB) has adopted special strategy to reduce its non-performing loans (NPLs), which was mainly responsible for comparatively poor net profits registered in the last couple of years than the trend of previous three years. According to the financial statements, the bank’s net profit increased during the period from 2013 to 2015, but started declining in the following years (2016 and 2017) although the gross revenue earnings and operating profit were increasing. The bank reported its net profit of Tk 3.07 billion in 2013, Tk 3.65 billion in 2014, Tk 3.98 billion in 2015, Tk 2.49 billion in 2016 and Tk 2.31 billion in 2017. It exhibited a mixed trend in gross revenue earnings during the last five years, amid a steady growth registered in collection of deposits and operating profit. According to the annual report of 2017, the bank’s deposit collection gradually rose from 2013 to 2017. The deposits stood at Tk 184.89 billion in 2013, Tk 211.07 billion in 2014, Tk 220.86 billion in 2015, Tk 257.70 billion in 2016 and Tk 278.19 billion in 2017. The bank earned an operating profit of Tk 7.12 billion in 2013, Tk 8.71 billion in 2014, Tk 8.40 billion in 2015, Tk 7.58 billion in 2016 and Tk 7.95 billion in 2017. The UCB, presently an ‘A’ category company, was listed with the stock exchanges in 1986. The company’s sponsor-directors hold 36.67 per cent shares, while the government holds 0.81 per cent, institutions 18.67 per cent, foreigners 1.94 per cent and the general public 41.91 per cent shares. The company’s share price closed at Tk 17.90 each on Thursday last with a marginal loss of 1.66 per cent or Tk 0.30.
WB vice president arrives in Dhaka today
World Bank (WB) Vice President Hartwig Schafer arrives in Dhaka this (Sunday) evening on a weeklong visit to assess the way of helping Rohingya, now stranded in Cox’s Bazar. During his stay in Bangladesh, Mr Schafer will visit the Rohingya camps and meet local government officials, civil society and non-governmental organisation representatives in Cox’s Bazar, said the WB Dhaka office on Saturday. The Washington-based lender has already assured the government of providing US$400 million grant to help Bangladesh deal with the Rohingya influx crisis. It has also confirmed $75 million grant for improving health services and education of the Rohingya, many of whom are children, youths or women. Launching ceremony of a WB report titled “South Asia’s Hotspots: The Impact of Temperature and Precipitation Changes on Living Standards” will be held in Dhaka on September 26.
BD trade fair opens in NY
A three-day Bangladesh trade fair kicked off in New York City on Friday (September 21), pledging further expansion of Bangladesh-made goods in the USA.The “Rupayan NRB Global Convention and Bangladesh Trade Fair-2018” is being held at Jackson Heights in New York. Muktadhara New York Inc. is the organiser of the trade fair. Acting Editor of The Financial Express Shahiduzzaman Khan inaugurated the fair by releasing 47 balloons. Some 30 local business groups, including realtors Rupayan Group and Purbachal American City are participating in the fair. Earlier, founder of Muktadhara Foundation Biswajit Saha proposed announcing the day marking the Bengali speech by Bangabandhu Sheikh Mujibur Rahman on September 25, 1974 at the UN.
PRAN signs $5.0m deal with Netherlands food group
PRAN, a local food processor, signed on Saturday an agreement with the Netherlands-based Engel Foreign Food to export its products worth US$ 5.0 million. Engel Foreign Food Group, a popular chain shop of the Netherlands, will purchase PRAN products including noodles, juice and confectionery items in next one year under the deal. They started exporting our products to the Netherlands in 2017. For the first time, we will export aloe vera juice to Engel Group this year. This juice will be available in 500 outlets of various famous super shops in the Netherlands, Germany, France and Poland
Farmers Bank to change name
The Farmers Bank Ltd is set to renew its operations under a new name from January 2019 as part of re-forming itself in this sector. The bank will also get a new name, new logo and colour to rebrand. The bank has started a new journey. Just like the change in management, credit distribution and deposits have also been re-formed. The bank has advanced substantially in terms of capital restructuring and its liquidity crisis has been over almost 100 per cent. The bank rolled out two new deposit products-Kotipoti Deposit Scheme (KDS) with insurance option and Target Deposit Scheme with insurance option-for one year. It also launched a campaign with a view to earning more deposits. Styled ‘Current and Savings Accounts’, the drive will go on for two months to open 6,000 strong accounts.
BHBFC to launch Tk 2.0b scheme for farmers
Bangladesh House Building Finance Corporation (BHBFC) has already got approval from Ministry of Finance to launch the Tk 2.0-billion house financing scheme to ensure house for farmers. Initially, some 500 farmers will get the home loan at an interest rate of 8.0 per cent. BHBFC has already collected a list of 100 farmers from Bangladesh Krishi Bank (BKB), and will gradually increase the number. BHBFC and BKB will soon ink a Memorandum of Understanding (MoU) for further cooperation regarding the initiative. The corporation will allocate money for the scheme from its own budget and from Islamic Development Bank (IDB)-financed ‘Rural and Peri-urban Housing Finance Project’. The IDB project emphasises farmers and middle-income people for disbursing home loan. BHBFC has already inked a Subsidiary Loan Agreement (SLA) with the government to avail fund from the project. A total of 94.75 million euro will be provided under the project in three successive years. The loan scheme proposal is scheduled to be passed in BHBFC board meeting on September 24 to complete further formalities.
HSBC felicitates top exporters
HSBC Bangladesh yesterday recognised six exporters for their leadership in promoting the country and contributing to its sustainable growth. The winners of the 8th HSBC Export Excellence Awards are: DBL Group, Urmi Group, Etafil Accessories, Western Marine Shipyard, Mazen (Bangladesh) Industries Ltd, and Walton Hi-tech Industries Ltd. DBL Group won the exporter of the year award in the readymade garments category with an annual export turnover of more than $100 million. One of the leading knit garments and fabrics manufacturers and exporters in the country since 1991, the group caters to buyers mainly in the European Union and the US. It is currently composed of 25 concerns with a workforce of 30,000. HSBC has been in Bangladesh for just over 22 years now, and in that time we have been privileged to bear witness to the incredible growth of Bangladesh’s economy. As the economy grows it also diversifies. Nielsen Bangladesh and KPMG are the programme partners of this year’s awards. HSBC Bangladesh helps to export products to over 100 countries each year. More than 10 percent of Bangladesh’s global trade is channeled through the bank.
Japan mulls bilateral trade deal with US
Japan is mulling a bilateral trade agreement with the United States that would lower tariffs on US agriculture imports in exchange for avoiding higher tariffs on Japanese autos. Japanese Economy Minister Toshimitsu Motegi will meet US Trade Representative Robert Lighthizer to hold talks on Sept 24 to lay the groundwork for a meeting between Japanese prime minister Shinzo Abe and US president Donald Trump on Sept 26. Trump has made clear he is unhappy with Japan’s $69 billion trade surplus with the United States, nearly two-thirds from auto exports, and wants a two-way agreement to address it.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX|| 5467.05065 || ↓10.32|| ↓0.31%|
|DJIA||26,743.50|| ↑86.52 ||↑0.32%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 70.78||↑0.46||↑0.65%|
|Crude Oil (Brent)||$ 78.80||↑0.10||↑0.13%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8858|
|GBP 1||BDT 109.6555|
|EUR 1||BDT 98.5574|
|INR 1||BDT 1.1618|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.