Banks face huge rush ahead of Eid-ul-Azha

With the general banking closing today before the continuous 6-day Eid-ul-Azha vacation, commercial banks are witnessing a huge rush of clients withdrawing cash to meet Eid spending. Over the last three days, the banks in the metropolis have been packed with clients, especially for withdrawal of remittances, reports BSS. Expatriates generally send a large amount of money to their relatives especially before Eid-ul-Azha for the purchase of sacrificial animals, said an official of a commercial bank in Motijheel. While visiting different bank branches in the capital on Wednesday, it was found that officials-employees were facing difficulties in handling large number of clients who were waiting in queues before the cash counters for withdrawal of cash. People were seen standing in queues for more than half an hour for withdrawal. Talking to BSS, executive vice president of the Corporate Branch of Sotheast Bank, Abdul Baten Chowdhury at Dilkusha, said there were huge withdrawals, especially by the individuals, in his branch over the last two days. A large number of clients queued in the cash transaction section on Wednesday and over Tk 10 crore was withdrawn till 3.30pm , he added.

Source: http://www.daily-sun.com/printversion/details/165675/Banks-face-huge-rush-ahead-of-EidulAzha

Banks asked to tighten security during Eid

Banks have been asked to tighten security in their respective branches, head offices and ATM booths to tackle cyber crime and any untoward incidents during Eid holidays, said a circular the central bank issued yesterday. BB also advised the banks to take necessary measures to monitor the banks rotationally by bank officers during the holidays. In an another circular issued yesterday, the central bank asked the banks to ensure non-stop transaction through ATM (Automated Teller Machine), POS (Point of Sale), e-Payment Gateway, MFS (Mobile Financial Services) during Eid celebration. The circular mentioned that most of the bank branches will remain closed from 9 to 14 September. During this period banks will have to take necessary steps to make sure that e-Transactions go on smoothly and uninterruptedly.

Source: http://www.dhakatribune.com/business/2016/09/08/banks-asked-tighten-security-eid/

Credits to private sector see crunch in July

Private-sector credit growth tumbled in July after a continuous increase in last10 months, said officials, who saw the crunch as a seasonal phenomenon. The growth in credit flow to private sector declined to 16.0% in July 2016 on a year-on-year basis from 16.8% in June last, according to the central C dwarfed during the period under review due to higher recovery of loans, particularly short-term ones, than fresh disbursement by the banks, the central banker explained. He also said prolonged Eid vacation in July had also worked to push down such credit growth. The central bank had projected that private-sector credit would grow at 16.6% in December 2016 and 16.5% in June 2017 respectively.

Source:
http://print.thefinancialexpress-bd.com/2016/09/08/151347
http://newagebd.net/250639/pvt-sector-credit-growth-falls-july-10-month-rise/

Foreign investment in stocks trebles

Net foreign investments in the capital market trebled year-on-year in the first eight months of the year as overseas investors were anticipating a positive market scenario. Foreign investors bought shares worth BDT 3,051.14 crore and sold shares worth BDT 2,605.44 crore to take their net investment for the January-August period to BDT 445.7 crore. Net investment by foreigners in the first eight months in 2015 stood at BDT 144.26 crore, according to Dhaka Stock Exchange data. Local investors are hardly making money from stockmarket but foreign investors are doing well as they make investments for the long-term, said Sherief MA Rahman, chief executive officer of Brac-EPL stock brokerage, which provides services to foreign fund managers. Rahman went on to call for listing of fundamentally sound companies in the market in future for attracting foreign investors. Bangladesh stockmarket is a retail-based and also an emerging market, with its currency rate being in a stable position for the last 3-4 years.

Source: http://www.thedailystar.net/business/foreign-investment-stocks-trebles-1282360

Deduction of tax at source from unit-holders of MFs: Bangladesh Securities and Exchange Commission seeks ‘specific instruction’ from National Board of Revenue

The securities’ regulator has sought ‘specific instruction’ from the revenue board on deduction of tax at source from unit holders during liquidation of mutual funds (MFs) for the sake of MF industry. The Bangladesh Securities and Exchange Commission (BSEC) has sought NBR’s instruction in the backdrop of its previous instruction to deduct tax at source considering the unit holders’ accumulated profit as dividend in accordance with the section 2(26), 54 and 56 of the Income Tax Ordinance, 1984. Two closed-end MFs — AIMS First Guaranteed MF and the First Scheme of Grameen MF One completed liquidation process in June last and subsequently the NBR asked the trustees of these funds to deduct tax at source from the unit holders’ accumulated profits. Complexities also emerged as the revenue board instructed the trustees to consider the units’ face value as cost price. The BSEC said market price, stock dividend and re-investment units will have to be taken into account in determining the cost price of the units purchased by a unit-holder.

Source: http://print.thefinancialexpress-bd.com/2016/09/08/151319

Three new export-oriented sectors to get cash subsidy

The government has brought three new export-oriented sectors under the list of beneficiaries of cash subsidy for the fiscal year 2016-17 to help increase the earnings from these sectors, according to the Finance Ministry sources. Among the new sectors, agar and attar exporters will get 20.0% cash incentive, paper and paper-made product exporters will get 10.0% cash subsidy. The crust and finished leather exporters who have shifted their industries to Savar area will get 5.0% cash incentive from the current fiscal year. Finance ministry has also revised the rates of cash subsidy for jute diversified products to 20.0% from existing 10.0%, for leather products to 15.0% from 12.5% and vessel exporter will get 10.0% from existing 5.0%. The ministry also has replaced 5.0% cash subsidy from bone powder into the export of different parts of cows including gut, horns and vein. Potato exporters will get 10.0% incentive, down from existing 20.0%, according to the ministry sources. The ministry recently in a letter requested the Bangladesh Bank (BB) for taking necessary steps to this effect.

Source: http://print.thefinancialexpress-bd.com/2016/09/08/151312

Kuwait bans hiring manpower from Bangladesh

The Kuwait government has once again imposed a ban on recruiting workers from Bangladesh, the Kuwait Times reported Tuesday. The Interior Ministry of the government of Kuwait reintroduced the ban after months from reopening it under certain controls, including that the employer must own a house, according to a report of the Kuwait Times. Referring to a news item of the Arabic language daily Al-Anbaa, the newspaper report said Undersecretary Assistant for Citizenship and Passports Affairs Sheikh Mazen Al-Jarrah made the decision Monday after viewing statistics which showed that the number of the Bangladeshi community in Kuwait had reached 200,000 as of the end of last week. It is not known whether Sheikh Mazen would reconsider his decision in the future or would announce more controls to regulate the recruitment of workers from Bangladesh, the Kuwait Times reported. When contacted, additional secretary to the Ministry of Expatriates’ Welfare and Overseas Employment (EWOE) Jabed Ahmed, however, told the FE that his ministry had not yet been informed about the Kuwait government’s latest decision on hiring workers from Bangladesh.

Source: http://print.thefinancialexpress-bd.com/2016/09/08/151356