Business News

» BSEC finalising acquisition rules, merger not included

The Bangladesh Securities and Exchange Commission is finalising only the acquisition rules on disclosure basis, putting on hold the merger rules.  After a couple of years of assessing the rules, the regulator has now decided to amend existing rules only to settle share acquisitions. A BSEC committee would work with the merger rules later as the issue was sophisticated to address now, officials said. A company now merges with another company and take over its shares under the Company Act 1994 with the shareholders approving the deal and the court having the final say. The commission has taken a number (more…)

» Foreign loans getting costlier: BIBM

Increasing LIBOR rate and the appreciation of the greenback against the taka are putting pressure on Bangladeshi businesses that borrowed from foreign sources to meet their needs, according to a report of the Bangladesh Institute of Bank Management. If these pressures cause the exchange rate to depreciate further the private sector debt will become costlier to service, said the report that will be unveiled today. Most of the borrowers are importers, meaning they have no source of foreign currency earnings to absorb the pressure. Between 2013 and 2017, the private sector’s commercial borrowing from external sources almost trebled, according to (more…)

» Banking sector now an orphan

The banking sector, which is currently going through choppy waters thanks to rising loan irregularities and deteriorating corporate governance, is being enabled by those who were supposed to keep it in check, said the Centre for Policy Dialogue. The independent think-tank organised the meet at the CIRDAP auditorium to share its recommendations for fiscal 2018-19’s national budget. The banks’ cash reserve requirement, which is a specified minimum fraction of the total deposits that banks must hold as reserves either in cash or as deposits with the central bank, was cut by one percentage point and set at 5.5 percent. The (more…)

» Farm loan growth slows to 2.55pc in 9 months

Disbursement of farm loan has increased by only 2.55 per cent during the July-March period of the current 2017-2018 fiscal year. It was 23.39 per cent during the same period of the previous fiscal year, 2016-2017. In March of the current fiscal year, private commercial banks and foreign commercial banks along with state-owned banks had disbursed Tk 1,694 crore in farm loans that took the total loan disbursement in July-March to Tk 16,214 crore, a Bangladesh Bank data released on Wednesday showed. The farm loan disbursement figure for the nine months of the current fiscal year represents 79.48 per cent of (more…)

» BD needs new drivers of growth: ADB

Contributions of exports and remittances to the economy, the two traditional growth drivers of Bangladesh, have weakened in recent years. Making the observation, Asian Development Bank (ADB) stressed on the needs of seeking new drivers of growth in near future. It pointed out the export-GDP ratio declined below 15 per cent in the current year which was around 20 per cent five years back. In a similar vein, remittance-GDP ratio came down to around 5 per cent, which was around 10 per cent in 2013. ADB viewed that promoting labour-intensive manufacturing in general would help the industry to expand and (more…)

» Banks have no deposit crisis

There is no fund crisis in the banking sector, rather the problem lies with the distribution of the deposits, a top banker said yesterday. Anis A Khan, managing director of Mutual Trust Bank, said state-run banks are sitting on a pile of deposits whereas private commercial banks are running after funds that led to a severe liquidity shortage. He spoke at the launch of the MTB Student Banking, a new product designed to attract long-term deposits, at the MTB Tower at Bangla Motor in Dhaka. On April 3, the central bank slashed the CRR to 5.5 percent from 6.5 percent. (more…)

» A new horizon opens for pharma ingredient makers

The government plans to offer a host of incentives to encourage local manufacturing of raw materials for the pharmaceutical sector with a view to boosting exports and lowering the cost for domestic consumers. Bangladesh largely relies on imports for raw materials in the absence of local active pharmaceuticals ingredients (API): about 95 percent of the Tk 5,000 crore worth of raw materials needed by the pharmaceutical sector are brought in from abroad. Besides, the raw materials, which are mostly imported from China, South Korea and India, are not always of the requisite quality. A dedicated backward linkage will not only enable (more…)

» Yarn production to rise 2.67pc: USDA

Yarn production is set to expand 2.67 percent to 7.70 lakh tonnes this fiscal year on the back of rising garment exports, according to a report from the United States Department of Agriculture. But the Bangladesh Textile Mills Association says the amount of yarn produced in the country is much higher at 13.50 lakh tonnes a year. The total demand for yarn is more than 21 lakh tonnes. Of the amount, nearly 30 percent is imported, mainly from India, China, Vietnam and Pakistan. Cotton import in Bangladesh has been increasing between 20 and 25 percent over the last few years, (more…)

» WB doubts 7.65pc GDP growth estimate

The World Bank yesterday questioned the 7.65 percent economic growth estimate being peddled by the Bangladesh Bureau of Statistics for fiscal 2017-18, raising doubts over claims of robust expansion of the manufacturing sector and domestic demand. It is being said that the manufacturing sector is growing faster than last year. But the Washington-based multilateral lender said production capacity has not increased from last year as private investment has remained almost stagnant. The WB also raised doubts over the estimate of 7-8 percent growth of domestic demand. The possible explanations behind such spike in growth could be either growth of employment (more…)

» Submit action plans to bring down ADR limit

The central bank has asked the banks to submit their specific action plans to its department concerned by April 30 to help bring down the advance-deposit ratio (ADR) limit at required level, officials said. The banks, having the ADR above re-fixed limit, will have to submit monthly progress reports to the Department of Off-site Supervision (DOS) within 10 working days each month, according to a notification issued by the Bangladesh Bank (BB) on Monday. As per the notification, the banks having over ADR limit will have to avoid sanctioning fresh loans without complying with other prime indicators of the ALM (more…)


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