United News of Bangladesh

Industries Minister Khandakar Abdul Muktadir on Thursday said eliminating overlapping projects run by different ministries could ensure double-digit efficiency gains as the government moves to review such duplication to boost national productivity. Speaking at an event organised by the Ministry of Industries in Motijheel, he said efforts are underway to examine whether projects implemented by different ministries overlap. “No issue today is confined to one country; we have to look at the whole world,” the minister said, adding that it is not possible to remain outside the existing global system even if one wishes to. “So, there is no alternative to raising productivity. The nation that increases productivity will be the one that advances,” he said. Pointing to the ready-made garment (RMG) sector, Muktadir said it has demonstrated how progress can be achieved even with workers from marginalised sections of society. Speaking at the event, Centre for Policy Dialogue (CPD) Executive Director Nazneen Ahmed said small enterprises need support to grow into medium-sized ones, and that the government coordinates with various sectors to facilitate such growth. She stressed the need to examine whether these initiatives involve duplication. Nazneen said the government needs assistance in designing productivity training, adding that replacing people with machines should not be the goal. Instead, she said, attention should be given to how machinery and technology can enhance workers’ skills, while innovation also needs to be increased. The CPD executive director noted that women’s participation in large industries is declining. “Women cannot take the skills training required for automation because of household pressures, so they are falling behind in skill-based jobs,” she said. She also proposed a refinancing scheme for the SME sector, saying linking loans to productivity improvement could lead to significant growth in the sector.

Asian shares mostly gained Thursday as investors continued to buy technology stocks, particularly those linked to artificial intelligence, despite uncertainty over the war in Iran and its impact on energy markets. Japan's benchmark Nikkei 225 rose 3.3% to 68,956.72, while South Korea's Kospi gained 2% to 6,971.35. Australia's S&P/ASX 200 fell nearly 2% to 8,614.40. Markets in Hong Kong and Shanghai were closed for a national holiday. In Tokyo, shares of companies expected to benefit from strong demand for computer chips and AI-related technology advanced. Advantest, Tokyo Electron and SoftBank Group were among the gainers. On Wall Street, US stocks mostly declined Wednesday despite signs that the US economy remains relatively strong. The S&P 500 fell 0.3%, ending its third losing month in the past four months. The Dow Jones Industrial Average dropped 443.87 points, or 0.9%, while the Nasdaq composite gained 0.2%. A US inflation report showed consumer prices rose 3.4% in August from a year earlier, below economists' expectation of 3.7% but still above the Federal Reserve's 2% target. Oil prices continued to fluctuate amid uncertainty over when the Iran war will allow crude supplies to return to normal. US benchmark crude rose 0.12% to $90.53 a barrel, while Brent crude gained 0.32% to $98.34. Iranian officials said Wednesday they had received an official US response to Tehran's latest proposal aimed at ending the seven-month conflict but did not disclose its contents. US President Donald Trump had rejected an earlier Iranian proposal to reopen the Strait of Hormuz within a week if Washington met certain conditions. The yield on the 10-year Treasury note rose to 5.29% from 5.26%, returning to levels last seen more than two decades ago. The 30-year Treasury yield increased to 5.64% from 5.59%. The S&P 500 fell 19.30 points to 7,651.54, while the Dow dropped 443.87 points to 50,906.05. The Nasdaq gained 63.52 points to 26,861.06. In currency trading, the US dollar rose to 158.30 Japanese yen from 157.33 yen, while the euro fell to $1.1320 from $1.1334.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday said transactions through Bangla QR codes will be completely free as the government moves to build a cashless Bangladesh and promote the digital economy. “There will be no fees or charges for transactions through Bangla QR. Any transaction using the QR code will be completed free of cost, without any additional charge,” he said. The minister was speaking after inaugurating shopping through Bangla QR at Banani Kitchen Market in the capital and inspecting QR code-based transactions there. He said the government plans to bring people from all sections of society including fuchka sellers, rickshaw pullers and small traders under QR code-based digital financial services. Under the system, even small traders and street vendors will be able to receive payments directly into accounts with any bank or service provider using QR codes, he said. “This will remove the need for people to carry cash and make transactions easier and faster,” the minister said. Khosru said some minor technical challenges or temporary problems might emerge during the initial stage, but those could be resolved quickly. He said cashless transactions have already proved to be convenient and secure in many developed and fast-growing economies around the world. “Bangladesh Bank is also working to make this international practice universal in Bangladesh,” he said. The minister urged citizens, businesses and service providers to participate in the government initiative without hesitation to help build a cashless and secure economic system.

Islami Bank Bangladesh PLC launched a month-long "Cyber Security Awareness" campaign on Wednesday to strengthen data protection, safeguard customer trust, and build a resilient digital banking infrastructure. Dr. M. Kamal Uddin Jasim, Managing Director (Current Charge) of the bank, inaugurated the campaign as the chief guest at a ceremony held at Islami Bank Tower in Dhaka. Emphasizing the imperative of robust digital security, Dr. M. Kamal Uddin Jasim said, "With the growing use and importance of information technology, the significance of cyber security has increased manifold. Ensuring customer trust, data confidentiality, and security is one of our primary responsibilities. Along with institutional measures, every official and employee must play an active, conscious, and responsible role in ensuring cyber security." The inauguration ceremony was chaired by Executive Vice President Mohammad Rezaul Karim, while Senior Vice President S M Mizanur Rahman delivered the welcome address. Islami Bank Deputy Managing Directors Md. Rafiqul Islam, Muhammad Sayeed Ullah, Md. Maksudur Rahman, Abu Sayed Md. Idris, and Md. Zakir Hossain, along with other senior executives and officials, attended the event. All zone heads, branch managers, and sub-branch in-charges across the country also joined the program virtually, according to a press release.

Bangladesh Bank (BB) on Wednesday unveiled its first-ever quarterly Monetary Policy Statement (MPS) for October–December quarter of FY 2026–27, keeping the benchmark policy interest rate unchanged at 9.50 % to curb inflation, while acknowledging that elevated borrowing costs continue to suppress private sector credit growth. The central bank transitioned to a quarterly monetary policy framework from the previous half-yearly cycle in line with condition set by the International Monetary Fund (IMF). Deputy Governor Dr. Md. Habibur Rahman formally announced the monetary policy at a press briefing held at the Jahangir Alam Conference Hall of the central bank's headquarters in Motijheel. Under the policy decision, the Standing Lending Facility (SLF) rate remains unchanged at 11%, while the Standing Deposit Facility (SDF) rate stands at 7.50 %. Highlighting the state of credit flow, the central bank noted that higher financing costs resulting from the tight monetary stance, alongside energy shortages, infrastructure bottlenecks, and investment uncertainty, have severely constrained credit expansion. Private sector credit growth slowed to a sluggish 4.75 percent in August 2026, reflecting weak investment demand, elevated borrower risks, and structural vulnerabilities in the banking sector, where the non-performing loan (NPL) ratio reached 32.78 percent in June 2026. The Deputy Governor expressed optimism that private sector credit growth would pick up during the October–December quarter as liquidity conditions adjust. Explaining the rationale behind keeping the rate unchanged, the central bank stated that premature monetary easing could reignite inflation expectations. Although headline inflation eased to a 10-month low of 8.26 percent in August 2026—driven by food inflation slowing to 7.02 percent—non-food inflation remained elevated at 9.32 percent. Underlying price risks linger due to global energy price volatility, potential supply disruptions in the Strait of Hormuz, recent domestic fuel price hikes, and fiscal pressures from the national pay scale implementation. On overall economic performance, BB cited that real GDP growth for FY26 stood at an estimated 4.14 percent, though Q3 FY26 growth fell to 2.2 percent alongside a 0.28 percent contraction in industrial output. For FY27, the World Bank projects GDP growth at 4.6 percent, while the IMF has revised its projection down to 3.5 percent from 4.3 percent. To support growth without undermining price stability, the central bank highlighted a Tk 60,000 crore stimulus package, which includes Tk 20,000 crore for reopening closed factories, alongside active refinance schemes for CMSMEs, agriculture, and export diversification. Regarding the external sector, BB reported that robust remittance inflows—growing by 18.90 percent in early FY27—and a broadly stable exchange rate continue to bolster foreign exchange reserves and help buffer against imported inflation.

Digital transactions through the universal Bangla QR system have surged sharply over the past 90 days, with average daily transaction value rising from around Tk 28 crore in June to Tk 143.54 crore currently, Bangladesh Bank said Wednesday. The number of daily transactions has also increased 3.5 times during the period, from around 100,000 in June to nearly 350,000 now. Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan disclosed the performance metrics during a press briefing at the central bank headquarters on Wednesday. Senior officials from the Payment Systems Department jointed the briefing. At present, customers of various banks and Mobile Financial Service (MFS) providers can make payments across nearly 3.9 million (39 lakh) merchant points nationwide by scanning Bangla QR codes through their financial apps. To accelerate the transition toward a cashless economy, Bangladesh Bank mandated the replacement of all proprietary QR codes with the universal Bangla QR framework on July 1. New Facilities Effective October 1 To further boost adoption, several new incentives and operational changes will take effect on October 1. Under the revised guidelines, payments made via Bangla QR will be credited to merchants' accounts instantly. Additionally, the central bank has abolished the minimum 1 percent Merchant Discount Rate (MDR) for acquiring institutions and set the Interchange Fee (IRF) for issuing institutions at zero percent. This policy shift is designed to significantly lower transaction costs for merchants, allowing banks and MFS providers to offer Bangla QR services at nominal fees or free of charge. Furthermore, Bangladesh Bank will provide a financial incentive of 0.10 percent to acquiring institutions and 0.20 percent to issuing institutions on Bangla QR merchant transactions up to Tk 2,000. P2P Transfers from November 1 To expand the operational scope of Bangla QR, Person-to-Person (P2P) inter-institutional transactions will launch on November 1. Under this system, individual customers can transfer funds directly to another individual by scanning a QR code or uploading a saved QR code image into their payment app. Addressing transaction failures, Bangladesh Bank has also strengthened mechanisms for swift refunds. The central bank issued detailed guidelines on September 27 to ensure transparent and rapid resolution of transaction disputes. Customers experiencing issues with Bangla QR transactions can lodge complaints directly via the Bangladesh Bank hotline at 16236.

Asian stocks mostly rose Wednesday, supported by continued optimism over artificial intelligence and chip-related companies despite concerns about the ongoing war in Iran. Japan’s benchmark Nikkei 225 jumped 2.1% in afternoon trading to 66,882.34. Australia’s S&P/ASX 200 gained 1.1% to 8,806.40, while South Korea’s Kospi slipped 0.1% to 6,861.30 after giving up earlier gains. Hong Kong’s Hang Seng rose 0.3% to 24,585.63, and the Shanghai Composite added 0.5% to 3,847.55. SoftBank Group Corp., which has invested in OpenAI, surged more than 6% in Tokyo. Japanese chip-related companies, including Renesas Electronics and Rohm Co., also gained. On Wall Street, stocks ended slightly lower Tuesday as rising long-term Treasury yields put pressure on markets. The S&P 500 fell 0.2% after moving between small gains and losses during the session. The Dow Jones Industrial Average declined 0.3%, while the Nasdaq composite dropped 0.1%. Major indexes turned lower as higher bond yields offset gains by several major technology companies. Nvidia, the market’s most influential stock, fell 0.7% after an early rise, while Broadcom gained 1.6%. Oil prices have fluctuated sharply as the U.S.-Iran war continues, contributing to a rise in Treasury yields to their highest level in 24 years. U.S. benchmark crude rose 0.1% to $89.47 a barrel, while Brent crude, the international benchmark, gained 0.49% to $103.09. Brent remains well above the roughly $72 a barrel recorded before the U.S. and Israel attacked Iran in late February. Mediators continued efforts to help the United States and Iran reach an agreement to end the fighting and reopen the Strait of Hormuz. President Donald Trump rejected a proposal from Tehran over the weekend to reopen the key waterway. The yield on the 10-year Treasury rose to 5.25% from 5.24% late Monday. It had reached 5.28% earlier Tuesday, its highest level since 2002, according to Tradeweb. The S&P 500 lost 12.85 points to close at 7,670.84. The Dow fell 131.59 points to 51,349.92, while the Nasdaq declined 22.84 points to 26,797.54. Several major U.S. economic reports are due this week, which could give investors and the Federal Reserve a clearer picture of the inflation outlook. U.S. inflation has remained above 3% for most of the year, well above the Fed’s 2% target. Wall Street expects the central bank to raise its benchmark interest rate again at its October meeting. “While it is easy to focus on the macroeconomic headwinds of bond yields and oil, the underlying U.S. economy remains remarkably resilient,” said Tina Teng, a market analyst at MooMoo, a global financial technology and online brokerage company. In currency trading, the U.S. dollar fell to 156.93 Japanese yen from 157.27 yen. The euro slipped to $1.1344 from $1.1347.

Southeast Bank PLC will raise Tk 800 crore through the issuance of its “Southeast Bank 6th Subordinated Bond”. According to Bangladesh Securities and Exchange Commission (BSEC) sources, the approval was given at the commission’s 1,031st meeting on Tuesday, chaired by BSEC Chairman Masud Khan. The seven-year bond will be fully redeemed at maturity and will be non-convertible and unsecured. Its coupon rate will be set at the reference rate plus 3 percent. The bond will be issued through private placement to institutional investors and high-net-worth individuals, with a face value of Tk 5 lakh per unit. Southeast Bank will use the proceeds to strengthen its Tier-2 capital base under Basel III requirements. DBH Finance PLC will act as the trustee, while UCB Investment Limited will serve as the issue manager. The bond will be listed on the main boards of both stock exchanges in Bangladesh.

Bangladesh Bank (BB) has issued its first comprehensive operational guidelines for Islamic credit cards, prohibiting commercial banks from generating extra revenue from growing customer debts or delayed bill payments. According to the directive issued by the central bank on Tuesday, any scheduled bank currently offering Islamic banking services is eligible to issue Taka-denominated cards. However, banks must hold Authorised Dealer (AD) licences to issue foreign currency or dual-currency cards. Under the new policy, all credit purchases, cash advances, and delayed payment periods will be treated strictly as “Qard Hasan” (an interest-free loan). Banks are prohibited from charging any profit or interest on these loan amounts. They can only levy fixed service fees (Ujrah) for specific, identifiable services rendered. Furthermore, banks are barred from using Mudarabah deposit funds—where depositors place money to earn profits—to finance credit card operations. Service charges, including card issuance, renewal, account maintenance, and cash withdrawal fees, cannot exceed the "actual direct cost" incurred by the bank. The central bank also restricted banks from passing merchant discount commissions on to cardholders. Any excess funds collected under this head must be refunded to customers at year-end or donated to charity. Elaborating on the fee cap, BB stated that if issuing and maintaining a card costs a bank Tk 800 annually, the maximum service fee charged cannot exceed Tk 800. Charges benchmarked as a percentage of the credit limit (e.g. 2 percent of the credit limit) or outstanding balances are strictly banned. Similarly, cash advance fees must be set as a flat amount rather than a percentage of the withdrawn amount. Cardholders who miss payment deadlines will be required to donate a pre-committed fixed amount to charity. Banks cannot record these penalty funds as corporate income. Since the charity amount is fixed upfront, it cannot escalate based on the length of delay. For example, if the agreed charity penalty is Tk 500, a customer delaying payment by two days or two months will donate the exact same sum of Tk 500. Cardholders will get a five-business-day cooling-off period following approval, during which they can cancel the card without penalty. Banks must issue a 30-day advance notice before modifying any fees or terms. Cardholders will not be held liable for fraudulent or unauthorised transactions. Unapproved transactions made after reporting a lost or stolen card must be refunded within seven working days. Cash withdrawals are capped at a maximum of 50 percent of the total credit limit, and banks are instructed to set credit limits conservatively to prevent over-indebtedness. Islamic credit cards cannot be used to purchase goods or services prohibited under Shariah law. Banks must implement Merchant Category Codes (MCC) to automatically block such transactions at the Point of Sale (POS). Mandatory blocked categories include alcohol, gambling, tobacco, and cryptocurrency trading. Additionally, banks are required to conduct annual Shariah audits and submit a consolidated compliance report to Bangladesh Bank within two months of the financial year-end. Any earnings derived from non-compliant transactions must be immediately disbursed to charity.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved proposals from five commercial banks to raise a combined Tk 3,500 crore through bond issues to strengthen their capital base. The decisions were taken at the commission's 1031st meeting, held at its office in Agargaon with BSEC Chairman Masud Khan in the chair. The commission approved a Tk 400 crore unsecured, non-convertible, fully redeemable, floating rate subordinated bond (Bond-VI) of One Bank PLC. The coupon rate will be the reference rate plus 3 percent. It will be issued through private placement to institutional and high-net-worth individual investors, with a face value of Tk 1 lakh per unit. Green Delta Capital Limited will act as trustee and UCB Investment Limited as issue manager. It also approved Southeast Bank PLC's Tk 800 crore, seven-year, fully redeemable, non-convertible, unsecured, floating rate subordinated bond (6th Issue), carrying a coupon of the reference rate plus 3 percent. Each unit will have a face value of Tk 5 lakh and will be placed privately with institutional and high-net-worth investors. DBH Finance PLC will serve as trustee and UCB Investment Limited as issue manager. BRAC Bank PLC received approval for a Tk 1,000 crore, three-year, unsecured, non-convertible, fully redeemable zero-coupon green bond, with a probable discount rate of 8.5 percent. Corporate entities, provident and gratuity funds, high-net-worth individuals and other eligible investors can subscribe through private placement, with each unit valued at Tk 10 lakh. The bank will use the proceeds for low-cost green financing to eligible clients. Prime Bank Investment PLC will be the trustee and IDLC Investments Limited the issue manager. The commission also approved Al-Arafah Islami Bank PLC's Tk 500 crore, seven-year, unsecured, non-convertible, redeemable, floating rate subordinated bond (AIBPLC 5th Subordinated Bond). The coupon will be the reference rate plus 3 percent, and each unit will be worth Tk 5 lakh. It will be issued to institutional and high-net-worth investors through private placement. DBH Finance PLC will be the trustee and UCB Investment Limited the issue manager. Bank Asia PLC's Tk 800 crore, seven-year, unsecured, non-convertible, fully redeemable, floating rate and sustainable subordinated bond was also cleared. The coupon rate will be the reference rate plus 3 percent, with each unit valued at Tk 10 lakh. It will be placed privately with institutional investors, high-net-worth individuals and other eligible investors. Besides bolstering the bank's Tier-II capital, the proceeds will finance and refinance eligible green and sustainable projects. DBH Finance PLC will be the trustee and Prime Bank Investment PLC the issue manager. The proceeds of One Bank, Southeast Bank, Al-Arafah Islami Bank and Bank Asia bonds will strengthen their Tier-II capital base under Basel III. The One Bank, Southeast Bank, BRAC Bank and Bank Asia bonds must be listed on the Main Board of the stock exchanges.