United News of Bangladesh

National Credit and Commerce (NCC) Bank PLC has recommended a 21 percent dividend for the year ending on December 31, 2025, comprising 17 percent cash and 4 percent stock. The announcement came through a disclosure published by the Dhaka Stock Exchange (DSE) on Tuesday. The bank also reported consolidated earnings per share (EPS) of Tk 4.29 for 2025, up from Tk 3.94 (restated) in the previous year. Central bank allows banks to grant incentive bonuses for special achievements Its consolidated net asset value (NAV) per share stood at Tk 27.20, compared to Tk 24.32 (restated) a year earlier, while consolidated net operating cash flow per share (NOCFPS) rose sharply to Tk 14.15 from Tk 2.83. The board said the stock dividend was recommended to strengthen the bank’s capital base, support future business expansion, improve regulatory ratios and facilitate profitable reinvestment. It also clarified that the stock dividend has been declared from current year’s profit and not from capital reserve, revaluation reserve or any unrealised gain. The annual general meeting (AGM) will be held on June 24, 2026 via a digital platform. The record date has been fixed for May 21, 2026. Following the dividend declaration, NCC Bank shares witnessed a sharp rally on the bourse. The stock, which opened at Tk 15.40 on Tuesday, closed at Tk 17.30, registering a gain of nearly 21 percent during the session. There was no price limit on the day’s trading following the corporate declaration. In the previous year, the bank declared a 13 percent cash dividend.

Bangladesh Bank (BB) on Tuesday issued a new directive allowing scheduled banks to provide incentive bonuses of up to one month’s basic salary to officers and employees in recognition of special achievements, even if they do not fully meet certain pre-set criteria. The Banking Regulations and Policy Department (BRPD) of the central bank issued a circular and sent it to the managing directors and chief executive officers of all banks. The move aims to boost employee morale and promote a competitive working environment in the banking sector. No scope for money launderers to return to bank boards: Bangladesh Bank The directive relaxes specific conditions outlined in BRPD Circular No. 12, issued on December 9, 2025. Under the new instruction, if a bank does not qualify for an incentive bonus under the strict conditions of the 2025 circular, its board of directors may still approve a bonus of up to one month’s basic salary, provided it recognises notable institutional achievements. However, to be eligible for this relaxation, banks must have earned an operating profit during the relevant year, maintain regulatory capital at a level not lower than the previous year (excluding any reduction resulting from a deferred provision previously approved by Bangladesh Bank), and not have applied for any new provision deferral facilities from the central bank during the period. The circular said all other provisions and conditions of BRPD Circular No. 12/2025 will remain unchanged.

Bangladesh Jewellers Association (Bajus) on Tuesday slashed gold prices by Tk 2,216 per bhori, citing a decline in the value of pure gold in the local market, with the new rates taking effect from the morning. Under the revised pricing, 22-carat gold price now stands at Tk 2,44,711 per bhori (11.664 grams), down from Tk 2,46,927 set on April 23, when Bajus had last adjusted rates, trimming Tk 3,266 per bhori. Prices across other carats were also revised downward. Twenty-one-carat gold dropped by Tk 2,099 to Tk 2,33,572 per bhori, while 18-carat gold fell by Tk 1,807 to Tk 2,00,213. Traditional-method (sanaton) gold was reduced by Tk 1,458 to Tk 1,63,063 per bhori. In a circular, Bajus said the adjustments reflect the prevailing market conditions following a softening of pure gold prices domestically. Tuesday's revision marks the 57th price adjustment for gold in Bangladesh so far in 2026, with rates having been raised 32 times and reduced 25 times. Silver also sees a cut In tandem with the gold price reduction, Bajus also lowered silver prices across all categories. Twenty-two-carat silver was set at Tk 5,482 per bhori, down Tk 233, while 21-carat silver fell by Tk 234 to Tk 5,190. Eighteen-carat silver was reduced by Tk 175 to Tk 4,491, and sanaton-method silver dropped Tk 116 to Tk 3,383 per bhori. Silver prices have been adjusted 36 times in 2026 to date up 19 times and down 17 times.  

Japan’s central bank on Tuesday kept its key interest rate unchanged at 0.75%, citing concerns that the ongoing Iran war could drive up oil and energy prices further. The decision by the Bank of Japan was widely expected, although the vote by its monetary policy board was split 6-3, indicating some disagreement among members. The central bank has been under pressure to slowly raise rates after maintaining near-zero levels for years to tackle deflation. The BOJ said the economy is still expanding at a moderate pace but warned that growth could slow in the coming months. “There are various risks to the outlook,” the bank said in a statement, adding that developments in the Middle East will need close monitoring. The ongoing conflict has effectively shut down the Strait of Hormuz, a vital route through which about one-fifth of the world’s traded oil and natural gas passes. With limited shipping, global energy supplies are tightening, pushing up prices of fuel, including gasoline and jet fuel, while shortages of cooking gas and other energy products are emerging in some regions. Japan, which relies heavily on Middle Eastern oil, is particularly vulnerable to such disruptions. Meanwhile, the U.S. Federal Reserve and several European central banks are also set to announce their interest rate decisions later this week. Following the BOJ’s announcement, Tokyo’s benchmark Nikkei 225 index fell by more than 1%.

Stock markets across Asia fell on Tuesday while oil prices climbed, as efforts to end the Iran war appeared to lose momentum again. Despite a fragile ceasefire, the Strait of Hormuz remains largely closed, disrupting a key route for global oil supplies. Many Asian economies, especially resource-dependent Japan, rely heavily on this passage for energy imports. Japan’s benchmark Nikkei 225 dropped 1.1% to 59,884.12 after the central bank kept its key interest rate unchanged at 0.75%. The Bank of Japan said the economy continues to grow at a moderate pace but warned of a likely slowdown as rising oil and commodity prices linked to the war increase costs. The decision by its policy board was split 6-3, reflecting differing views among members. Pressure has been building for Japan to gradually raise interest rates after years of keeping them near zero to tackle deflation. “There are various risks to the outlook,” the central bank said, noting that developments in the Middle East remain a key concern. Elsewhere in the region, South Korea’s Kospi rose 1% to 6,683.10. Hong Kong’s Hang Seng fell 0.7% to 25,751.04, while China’s Shanghai Composite declined 0.2% to 4,078.77. Australia’s S&P/ASX 200 lost 0.6% to 8,717.80. Oil prices continued to rise. Brent crude for June delivery increased by $1.11 to $109.34 per barrel. The more actively traded July contract rose $1.08 to $102.77. Before the war, Brent was trading near $70 per barrel but has at times surged close to $120. U.S. benchmark crude also rose 96 cents to $97.33 per barrel. Investors are now awaiting interest rate decisions from the U.S. Federal Reserve, the European Central Bank and the Bank of England later this week. On Monday, U.S. markets showed modest gains. The S&P 500 edged up 0.1% to a record high of 7,137.91, following weeks of strong performance driven by solid corporate earnings and hopes that the global economy can withstand the impact of the war. The Dow Jones Industrial Average slipped 0.1% to 49,167.79, while the Nasdaq composite rose 0.2%. Market attention is also focused on upcoming earnings reports from major tech companies, including Alphabet, Amazon, Meta Platforms, Microsoft and Apple. In the bond market, U.S. Treasury yields rose slightly alongside oil prices. The yield on the 10-year Treasury increased to 4.33% from 4.31% late Friday. In currency trading, the U.S. dollar weakened slightly to 159.04 Japanese yen from 159.42 yen, while the euro dipped to $1.1716 from $1.1720.

The administrators of five merged Islamic banks have sought a written and explicit directive from the Bangladesh Bank (BB) regarding the future of the merger process, following renewed instability among depositors. The unrest stems from a perceived ambiguity in Section 18(a) of the recently enacted Bank Resolution Act, 2026. The demand came during a meeting with the BB Governor Md Mostaqur Rahman on Sunday, when the administrators highlighted that many depositors are rushing to withdraw their funds – some even demanding only their principal amount without profits – fearing that previous owners might regain control of the banks. Last year, Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank, and Global Islami Bank were merged to form the Combined Islamic Bank. The process was overseen by central bank-appointed administrators. However, Section 18(a) of the new law stipulates that previous owners can regain control by repaying just 7.5 percent of the total financial assistance provided by the Bangladesh Bank and the government. The administrators argue this clause has triggered a fresh wave of uncertainty, stalling new deposits and severely hampering loan recovery efforts. Financial Crisis and Default Burden According to the BB data, the Combined Islamic Bank is currently grappling with a massive financial burden, with total outstanding loans standing at Tk 1.96 lakh crore. A staggering 84 percent of the total loan portfolio is classified as defaulted while the bank faces a capital deficit of Tk 1.50 lakh crore. To keep the institution afloat, the central bank has provided Tk 47,084 crore in liquidity support, while the government injected Tk 20,000 crore in capital. An additional Tk 12,000 crore has been allocated from the Deposit Insurance Fund. Operational Challenges The administrators noted that while a recent decision to provide 4 percent profit on deposits brought temporary relief, the legislative change has reversed those gains. They emphasised that without a clear, written message from the regulator confirming the permanency of the merger and the status of previous owners, restoring public trust in these Shariah-based institutions remains nearly impossible.

Asian stock markets showed mixed performance on Monday, while oil prices jumped sharply as uncertainty continued over talks to end tensions involving Iran. Japan’s benchmark Nikkei 225 hit a new record, rising 1.4% to close at 60,481.21 after touching an intraday high. South Korea’s Kospi also gained 2%. However, markets in Hong Kong and mainland China were less upbeat. Hong Kong’s Hang Seng fell 0.3%, while the Shanghai Composite edged up slightly. Australia’s S&P/ASX 200 slipped 0.3%. Taiwan’s Taiex jumped 1.8%, supported by strong demand for technology stocks driven by the growth of artificial intelligence. India’s Sensex also rose 0.4%. Oil prices surged as negotiations related to Iran faced setbacks. The White House canceled plans to send officials for further talks, with U.S. President Donald Trump saying discussions could continue remotely instead. Brent crude increased by $2 to $101.13 per barrel, while U.S. crude rose to $96.24. Investors are also watching closely as major central banks, including the Federal Reserve, European Central Bank, Bank of Japan and Bank of England, prepare to announce interest rate decisions this week. On Wall Street, markets ended last week on a strong note. The S&P 500 rose 0.8% to a record close, while the Nasdaq Composite jumped 1.6% to a new high, helped by gains in technology shares. The Dow Jones Industrial Average slipped slightly. A survey by the University of Michigan showed consumer confidence weakened in April, though it improved slightly after a ceasefire in the Iran conflict was announced earlier. Despite hopes for stability, tensions between the U.S. and Iran continue to disrupt oil shipments through the Strait of Hormuz, raising concerns in global markets. Meanwhile, tech giant Intel saw its shares surge after strong earnings, driven by rising demand for AI-related products. In currency trading, the U.S. dollar weakened slightly against the Japanese yen, while the euro gained ground.

Bangladesh’s ongoing energy crisis may ease temporarily but it cannot be fully resolved without a decisive shift to renewable energy, said the Centre for Policy Dialogue (CPD) on Monday. “We must think beyond fossil fuels,” CPD Research Director Dr Khondaker Moazzem said at the 4th Bangladesh-China Renewable Energy Forum organised by CPD under the theme “Transforming Crisis into Opportunities: Renewable Energy Development under the New Government”, at a hotel in Dhaka. “The crisis that fossil-fuel dependency has created across the world is not something that will be resolved overnight. Bangladesh needs to seriously consider alternatives in its energy sector,” he said. The veteran economist underscored China's pioneering role in the global renewable energy revolution and called for maximising bilateral cooperation in the sector. “China is at the forefront of renewable energy through its innovations. Chinese investment in Bangladesh's renewable energy sector is already substantial. This forum will deliberate on how to further enrich that investment going forward,” he said CPD's presentation introduced a conceptual framework: ‘3F-3R’: ‘Fallen Fossil Fuel, Rising Resilient Renewables’, to describe the structural shift Bangladesh must make. The think tank warned that even if the ongoing Middle East conflict subsided and the Strait of Hormuz reopened immediately, Bangladesh would continue bearing the economic burden of energy-supply disruptions for years to come. Using econometric modelling, CPD projected that geopolitical oil shocks would inflict limited but persistent macroeconomic damage through multiple channels: GDP losses in the range of 0.21 to 0.53 percent, inflationary pressure between 0.6 and 13.6 percent, and taka depreciation of 0.56 to 4.5 percent in the medium to long term. The BNP government has announced a target of generating 10,000 megawatts of electricity from renewable sources by 2030, and CPD estimated the associated investment requirement at approximately USD 9.36 billion, spanning utility-scale solar, rooftop and distributed solar, wind, and biomass and biogas installations. The 4th Forum, unlike its three predecessors, drilled down specifically on Power Purchase Agreements (PPAs) as the central contractual instrument through which investment either flows into or is repelled from Bangladesh's energy sector. CPD's research found that Bangladesh's PPAs have progressively deteriorated in terms of investor protection. The country's first renewable energy PPA, drafted with external legal expertise, contained strong sovereign guarantees, well-structured international arbitration clauses, and balanced risk coverage. Subsequent revisions have steadily tilted the framework in the government's favour, the think tank said. Compounding the problem, the interim government's decision to discontinue Implementation Agreements, which had previously provided sovereign backing for investor commitments removed a critical layer of payment security precisely when renewable investment was beginning to scale. No credible substitute mechanism has since been introduced, it observed. CPD flagged that Chinese investors account for over 50 percent of total foreign direct investment in Bangladesh's renewable energy sector, making the health of PPA arrangements disproportionately consequential for Sino-Bangladeshi energy cooperation. The forum presentation catalogued a series of persistent contractual and institutional failures that have deterred investment across four successive forums since 2023. On the contractual side, normal payment cycles of two to three months routinely stretch to five to eight months in practice. Payments are nominally denominated in local currency with US dollar equivalence, yet the PPA structure provides no compensation for exchange rate depreciation during the payment gap, a growing liability as the taka weakens. In at least one documented case, investors who had signed both a PPA and an Implementation Agreement and completed construction subsequently faced government attempts to revise the agreed tariff, with no contractual remedy available to them. On the institutional side, approvals required from multiple agencies, including BPDB, PGCB, REB, SREDA, and local authorities, proceed sequentially rather than in parallel, with no coordinated timeline or accountability mechanism for delays, said CPD. Land deemed officially cleared at the central level has in multiple cases faced challenges from local actors, with different ministries operating in silos and unaware of approvals issued by others, it added. The cancellation of 31 solar project Letters of Intent by the interim government, representing approximately 5.68 gigawatts and USD 6 billion in prospective investment, with USD 300 million already committed through banking channels and 15 companies having purchased land was cited as a particularly damaging signal to the investment community. CPD benchmarked Bangladesh's PPA template against those of India, Pakistan, Kenya, Tanzania, Vietnam, the Philippines, and Saudi Arabia. The analysis revealed that Bangladesh's BPDB tender document, unlike frameworks in Pakistan, the Philippines, and Saudi Arabia, lacks payment security instruments, Implementation Agreement-equivalents, and lender step-in rights, provisions considered standard in bankable renewable energy contracts internationally. The think tank's diagnostic assessment found that enforcement was the single weakest dimension of Bangladesh's PPA architecture, followed by an imbalanced risk allocation that structurally disadvantages the investor. “In a fair ecosystem, these two dimensions cannot be weak simultaneously.” Reform Roadmap: Immediate and Medium-Term In the immediate term, the think tank called for the introduction of a revolving Letter of Credit covering three to six months of payments, backed by a sovereign guarantee or central bank support, describing it as the single most important bankability improvement available within the existing PPA structure. CPD also recommended that when BPDB extends a Commercial Operations Date deadline, the corresponding Ready for Commercial Operations Date must be extended in parallel, a structural inconsistency that currently exposes developers to liquidated damages for delays of the government's own making. Over the medium term, CPD urged the establishment of an Inter-Agency Task Force with binding standard operating procedures and time-stamped approval responsibilities; the development of a dedicated Renewable Energy Procurement Guideline covering the post-award phase; the incorporation of lender step-in rights and a Dispute Adjudication Board into the standard BPDB template; and the restoration of a credible sovereign commitment mechanism functionally equivalent to the discontinued Implementation Agreement. CPD also called on the government to declare the power and energy sector a national priority sector, expand company courts with specialised commercial law expertise, and introduce mandatory tax and duty exemptions on renewable energy equipment, particularly inverters and batteries, on which import levies currently stand at around 61.8 per cent. On the financing side, the think tank urged Bangladesh Bank to establish a dedicated low-cost fund for rooftop solar and advocated for the use of land from cancelled fossil-fuel power plants and upcoming stranded assets to host renewable energy installations. It also highlighted the potential of Chinese technology, including solar panels, inverters, and lithium iron phosphate batteries and the possibility of establishing local battery assembly facilities in partnership with Chinese companies to reduce both cost and import dependence. The EU's Carbon Border Adjustment Mechanism, taking effect in 2027, was cited as an additional structural incentive for urgency: Bangladesh's export-oriented garment and textile sector would be required to demonstrate green energy sourcing to avoid carbon levies and maintain market access in Europe. CPD noted that the Bangladesh Investment Development Authority is set to open its first overseas office in China within approximately six months, a step expected to directly facilitate Chinese investment inquiries in Bangladesh's renewable energy sector. Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood attended the event as the chief guest. The forum was also attended by Chinese investors, development finance institutions, government officials, and energy sector stakeholders.  

Business leaders and industry stakeholders on Sunday called for a pragmatic, investment-friendly national budget for fiscal year 2026–27, stressing the need for entrepreneur-oriented tax policies, reduced registration costs in the housing sector and stronger energy security. The calls came at a roundtable titled “National Budget 2026–2027: Expectations of the Business Community,” organised by the Industrialists and Businessmen Welfare Foundation (IBWF) at the Jatiya Press Club in the city. Muhammad Abdul Mazid, former chairman of the National Board of Revenue (NBR) and current chairman of the Social Development Foundation (SDF), attended as chief guest, stressed the urgency of formulating a realistic, timely and business-friendly budget to drive economic growth, attract investment and generate employment. He called for modernisation of the tax system, enhanced revenue mobilisation and the adoption of entrepreneur-friendly policy frameworks. REHAB Senior Vice President Abdur Razzaque demanded a reduction in property registration costs, warning that land scarcity made vertical development unavoidable. “We must protect agricultural land. That makes planned high-rise construction not a choice, but a necessity.” He also emphasised that tax policy must be investment-friendly, grounded in market realities and oriented toward long-term national economic interests. REHAB Vice President Md Harun-or-Rashid urged rationalisation of taxes on secondary flat sales and called for a reduction in Tax Deducted at Source (TDS), noting that businesses were operating under severe financial pressure. Chairing the event, IBWF President Mohammad Shahidul Islam called for a budget that genuinely reflects the challenges, potential and expectations of entrepreneurs, particularly small and medium enterprises and urged the government to provide tax relief, easier access to credit and measures to reduce production costs. BGMEA Director Mozammal Hoque Bhuiyan demanded that bank lending rates be brought down to single digits, while BKMEA Director Moniruzzaman Monir pressed for expedited measures to ensure energy security. Participants also called for increased allocations in health, education, agriculture and infrastructure, alongside incentives for new investors, expansion of industrial zones, export sector development and policies to attract foreign direct investment. Leaders from FBCCI, BGMEA, BKMEA and representatives of the pharmaceutical and other industries also addressed the roundtable. IBWF Secretary General Dr Anwarul Azim and leaders of the organisation's Dhaka Metropolitan North and South units were among those present. The session concluded with participants expressing hope that a people-oriented, business-friendly budget would inject fresh momentum into the national economy and contribute meaningfully to sustainable development.      

Bangladesh's both stock exchanges began the week on a buoyant note Sunday, with benchmark indices on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) closing higher as overall turnover picked up noticeably from the previous session. The DSE's principal index, the DSEX, gained 17 points by the close of trading, while the blue-chip DS30 index added 11 points. The Shariah-based DSES, however, bucked the trend, edging down 1 point. Turnover on the DSE rose by nearly Tk 100 crore from the preceding session, with shares and units worth Tk 982 crore changing hands against Tk 884 crore recorded in the last trading day. Despite the headline index gains, declining issues outnumbered advancers. Of the stocks traded, 172 companies shed value while 157 advanced and 62 remained unchanged. In the block market, shares of 39 companies worth Tk 22 crore were traded, with Apex Spinning & Knitting Mills Ltd topping the segment at Tk 5 crore. Apex Tannery Ltd led the day's gainers with a near-10 percent price rise, while International Leasing and Financial Services Ltd slumped nearly 8 percent to bottom the table. The CSE mirrored the broader upswing, with its all-share index CASPI advancing around 45 points. Turnover at the port city bourse climbed to Tk 23 crore from Tk 21 crore in the prior session. Advancing and declining issues were nearly evenly matched at the CSE — 97 companies gained ground, 96 retreated and 28 held steady. Navana CNG Ltd surged 10 percent to lead gainers, while ICB AMCL 3rd NRB Mutual Fund fell by the same margin to top the day's losers.