Leaders of non-banks or non-bank financial institutions (NBFIs) on Tuesday said they would come forward to revive the country's economy in the face of ongoing COVID-19 crisis by working on liquidity crisis, enhancing internal economic capacity and supporting the bond market.
They made the remarks at an online press conference with the newly-appointed committee members of Bangladesh Leasing and Finance Companies Association (BLFCA).
Highlighting the success of the financial institutions, BLFCA Chairman Mominul Islam, also managing director (MD) and CEO of IPDC Finance Limited, said, NBFIs have been contributing to the socio-economic development of the country for the past few years.
Currently 33 financial institutions with their 276 branches and 8,358 officers are serving 255,000 customers across the country.
“By now, we have provided 6.4 percent loans to the banking sector, 13.3 percent to SMEs, 12.3 percent to industries, 45.5 percent to depositors, and 17.4 percent to general people,” he added.
He also mentioned that the capital capacity of the institutions is 16.9 percent while the capacity of the banking sector is 11.6 percent. NBFIs are also 1 percent ahead of them in terms of growth.
BLFCA Executive Member Arif Khan, also MD and CEO of IDLC Finance Limited, said nobody wants to invest in private financial institutions due to a high rate of government treasury bills.
“In order to enhance the bond market, the government has to pay more attention to mutual funds. If the bond market develops, the banking sector will also develop,” Arif khan added.
Golam Sarwar Bhuiyan, Abu Zafar Md Saleh, vice-chairmen of BLFCA, SM Shamsul Arefin, its executive member, among others, spoke at the occasion.
Islami Bank Bangladesh Limited has inaugurated its Bolirhat sub-branch at Khaja road, East Sholoshohor under Bahaddarhat Branch in Chattogram.
Mohammad Yakub Ali, executive vice president and head of Chattogram South Zone of the Bank inaugurated the sub-branch as chief guest on Sunday, said a press release on Tuesday.
Md. Nayer Azam, senior executive vice president and head of Chattogram North Zone addressed the program as guest of honor.
Meah Md. Barkat Ullah, executive vice president and head of Agrabad Corporate Branch and Md. Abul Kalam Azad, senior vice president and head of Jubilee Road Branch addressed the program as special guest.
Presided over by Mohammed Abdul Azim, senior assistant vice president and head of Bahaddarhat Branch, S.M. Khurshed Alam Chowdhury, in-charge of the sub-branch thanked the audience.
Businesspersons, professionals and social elites were present on the occasion.
Bangladeshi startup Dataful, the first data-based content portal, has been accepted into Etohum portfolio of companies – an Istanbul-based startup accelerator programme.
Dataful secured the deal following a month-long acceleration programme run by Etohum, said a press release on Tuesday. Dataful successfully completed the Startup Istanbul Acceleration Program.
Several Bangladeshi startups were shortlisted for the Startup Istanbul event which took place in June. Other finalists were from France, India, Pakistan, Indonesia, Turkey and Saudi Arabia.
Startup Istanbul is dubbed as the biggest Eurasia event which brings together investors, startup founders and executives from the region.
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Etohum organises Startup Istanbul events, an exclusive gathering of leading startups, internet companies, angel investors, and venture capitalists around the globe. They have received more than 200,000 applications from 178 countries.
Its alumni startups have raised more than $250 million in the last five years.
Commenting on the occasion, Polash Datta, founder and project lead of Dataful, said, ‘’The achievement is an inspiration for Bangladeshi startup community as startups here struggle to connect with potential investors.”
This is not the first partnership from Etohum in any startup. The accelerator has been in the business of supporting startups by providing seed funding since 2008. So far, they have invested many seed and early stage startups.
BDcabs is another startup from Bangladesh in which Etohum invested.
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The federal government incurred the biggest monthly budget deficit in history last month as spending on programmes to combat the coronavirus recession exploded while millions of job losses cut into tax revenues.
The Treasury Department reported that the deficit hit $864 billion in June while for the first nine months of this budget year, which began October 1, the deficit totals $2.74 trillion.
That puts the country well on the way to hitting the $3.7 trillion deficit for the whole year that has been forecast by the Congressional Budget Office, reports AP.
That total would surpass the previous annual record of $1.4 trillion set in 2009 when the government was spending heavily to lift the country out of the recession caused by the 2008 financial crisis.
The Trump administration is predicting that the economy will make a comeback in the second half of this year but many private forecasters are concerned that a resurgence of virus cases could make consumers too fearful to resume spending, which drives 70 percent of the economy.
Congress, which has already approved more than $3 trillion in a series of rescue packages, is scheduled to debate another support effort when it returns from recess on June 20. Democrats are pushing for an extension of the expanded unemployment benefits which will soon run out.
“The risk is that the deficit will be larger due to additional stimulus but given the congressional timetable, the impact of the next package will likely be skewed to fiscal 2021, which starts Oct 1,” Nancy Vanden Houten, senior economist at Oxford Economics said.
The Board of Directors of Dutch-Bangla Chamber of Commerce & Industry (DBCCI) has expressed deep shock over the demise of Nurul Islam Babul, Chairman of Jamuna Group.
"Our condolences to all of his beloved family members, supportive colleagues, friends and patrons," DBCCI said in a message on Tuesday.
"Our collective hearts are heavy with sympathy. We pray for his departed soul. May Almighty have mercy him and may rest in eternal peace. Prayer for the families lost their beloved, may Almighty hold them close and comfort them in their grief," the message reads.
The Jamuna Group chairman breathed his last at Evercare Hospital on Monday at the age of 74.
Nurul Islam, also the founding chairman of Daily Jugantor and Jamuna Television, had been undergoing treatment at the Evercare Hospital since June 14 after he tested positive for coronaviurs.
Born in Noakhali in 1946, he founded Jamuna group in 1974 and established 41 organisations in industries and service sectors.
He was the chairman of Jamuna Group -- one of the biggest conglomerates in the country. Jamuna Builders Ltd, Pegasus Leathers Ltd, Jamuna Future Park, Jamuna Power Ltd, are among his business units.
Jamuna Group deals with electronics, cloths, woven garments, chemicals, leather, beverage, motorcycle, toiletries, and construction sectors. Jamuna Future Park and Marriott Hotel are the part of the Jamuna Group.
Nurul Islam, one of the prominent industrialists of the country, left behind his wife Salma Islam, MP and former state minister for women and children affairs; son Shamim Islam, managing director of Jamuna Group; three daughters -- Rozalin Islam, Monika Islam and Soniya Islam; and a host of relatives to mourn his death.
He had also taken up an initiative to build an international standard coronavirus treatment facility near the 300 ft road in the Kuril area of the city.
The business magnate has donated Tk 10 crore to the relief fund of Prime Minister Sheikh Hasina to fight against Covid-19 pandemic, DBCCI said.