Local-Business
Bank mergers could be counterproductive without international best practices: World Bank
The World Bank said that without assessing asset quality, the forced initiative of bank mergers might be counterproductive.
The World Bank said this at a press conference in its Dhaka office at the launch of "Bangladesh Development Update" on Tuesday.
No Padma Bank employee will lose job: Exim Bank Chairman says after signing merger
“A consolidation process will require careful assessment and prudent implementation of procedures to avoid weakening good banks and acquiring bad banks; an assessment of the asset quality of weak banks will be required,” said the World Bank.
World Bank Country Director for Bangladesh and Bhutan, Abdoulaye Seck, its Chief Economist for South Asia Region, Franziska Ohnsorge, and its Senior Economists, Bernard James Haven and Rangeet Ghosh, spoke at the event.
Padma, Exim Bank to sign MoU for merger Monday
The observation comes weeks after Shariah-based Exim Bank agreed to take over the stressed Padma Bank as part of the Bangladesh Bank's plan to rein in the runaway defaulted loans to a reasonable level and bring good governance to the banking sector.
The WB said before initiating any merger processes, detailed guidelines on mergers and acquisitions need to be issued, giving banks a clear idea of the process involved.
Weak banks could merge with good ones by Dec, or central bank to decide their fate
Such guidelines can be based on international best practices and provide alternative merger mechanisms for banks to choose from depending on the status of the banks or non-bank financial institutions deciding to merge.
Bank mergers will also require an evaluation of internal systems, branch networks, staffing levels, the adequacy of management arrangements, impacts on banks' cross-border business, and international risk ratings, a World Bank observation said.
BGMEA launches ‘Khalilur Rahman Knowledge Center’
In an effort to boost the competitiveness of Bangladesh’s garment industry, BGMEA on Tuesday launched the ‘Khalilur Rahman Knowledge Center’ at its headquarters in Dhaka on Tuesday.
BGMEA President Faruque Hassan inaugurated ‘Khalilur Rahman Knowledge Center’ in presence of Khalilur Rahman’s daughter Nasreen Subhan, son architect Nahas Ahmed Khalil and daughter-in-law Rupa Sayef.The BGMEA has recognized the importance of continuous learning and innovation in navigating the evolving landscape of global market trends, said a press release.
BGMEA president seeks embassy’s support in attracting Italy’s investment
As the apex trade body representing the RMG sector in Bangladesh, BGMEA endeavors to equip industry stakeholders with the requisite knowledge, skills, and technical know-how to tackle future challenges effectively.
Named in honor of the late Major General Khalilur Rahman (Retd), former president of BGMEA, the knowledge center stands as a tribute to his significant contributions that have been instrumental in the development of Bangladesh’s apparel sector.
BGMEA president visits Adamjee EPZ; seeks comprehensive support for factories
At the inauguration ceremony, BGMEA President emphasized the imperative of continuous knowledge enhancement for fostering competitiveness and sustainable growth within the RMG industry.
He underscored the pivotal role that the knowledge center will play in disseminating industry-relevant knowledge and enhancing its overall competitiveness.
Equipped with state-of-the-art digital devices, the Khalilur Rahman Knowledge Center will serve as a hub for learning and collaboration, facilitating training sessions, seminars, and workshops.
Through its digitally-enabled platform, industry experts, academia, and professionals from across the globe will have the opportunity to engage virtually, exchanging insights and expertise on current and emerging business issues, as well as advancements in industry-related technologies.
Grameenphone introduces Eid offers to propel Smartphone adoption for all
Grameenphone, the connectivity partner to Smart Bangladesh, is amplifying the joy of Eid for its customers by introducing exclusive internet bundle offers alongside the purchase of authorized new 4G & 5G smartphones, enriching customers’ digital lifestyles.
To accelerate connectivity access, digital inclusion and the journey towards a ‘Smart Bangladesh’, Grameenphone collaborated with the top 10 smartphone partners to empower and build a nation of smart citizens. With this latest offer, Grameenphone users will enjoy a 6-month free internet package, and a 1-month subscription to premium OTT platforms with the purchase of a new smartphone.
As a key enabler of Smart Bangladesh, Grameenphone recognizes the pivotal role smartphones play in shaping a digital way of life to empower smart citizens.
The company believes in the transformative power of the internet, whether it’s for everyday necessities, education or healthcare to improve their lives.
Biman holds 'Meet the Press' in Italy’s Naples to promote its Rome-Dhaka flight
To accelerate smartphone adoption across the nation and realize the vision of Smart Bangladesh by 2041, Grameenphone has unveiled these exciting offers.
Customers can avail of this 6-month free internet bonanza by purchasing smartphones from any outlets of the leading brands such as Samsung, Xiaomi, VIVO, OPPO, Realme, Nokia, Tecno, Itel, Infinix, Symphony, as well as GP branded modems and routers.
Additionally, subscribers will enjoy 30-day complimentary subscriptions to leading streaming platforms such as Hoichoi, Chorki, and SonyLiv.
This comprehensive offer provides customers with both connectivity and entertainment options. Mohammad Sajjad Hasib, Chief Marketing Officer, Grameenphone, said, “Connectivity plays a crucial role in driving economic transformation. The four pillars of the Smart Bangladesh vision- smart citizen, smart economy, smart government, and smart society - all rely on digital connectivity. At Grameenphone, we recognize the essential role of smartphone penetration in achieving digital transformation. Our purpose is to connect people to what matters most to them, and we believe our collaboration with leading smartphone brands will ensure inclusivity in the journey towards a digitally connected society. Grameenphone is dedicated to empowering individuals with the power of connectivity, and this Eid, we wish to share joy and happiness with our customers with delightful offers in collaboration with our partners. Together, we aim to make the celebration even more vibrant and memorable for our valued customers.”
GP hosts Iftar event in Rangpur for GPStar customers
During the campaign, customers who purchase a smartphone will be eligible for 26GB of free internet with a 7-day validity for 6 months. Additionally, they will enjoy a 30-day free subscription to a premium OTT service for their first-time usage. Upon purchase, customers will receive an initial allocation of 4GB regular internet and 2GB streaming internet, both valid for 7 days.
They will also gain access to premium OTT services for a full month, allowing them to enjoy a wide range of exclusive content. From the second month until the sixth month, customers will continue receiving 2GB regular internet and 2GB streaming internet, both valid for 7 days.
'Pocket' wallet, BAJUS sign MoU to provide financial services
Bangladesh Jewellers' Association (BAJUS) and Payment Service Provider (PSP) Pocket of ABG Technologies Limited signed a memorandum of understanding on Monday.
Bajus General Secretary Badal Chandra Roy and ABG Technologies Limited Director Mostafa Azad Mohiuddin signed the MoU on behalf of their respective sides.
BGMEA president seeks embassy’s support in attracting Italy’s investment
The signing ceremony was held at the Bajus office in Bashundhara City Shopping Complex in the capital. Leaders and officials of both the organisatios were present.
According to pocket Authority, Pocket e-wallet has a modern and customer-friendly mobile app, through which customers can easily make sure fast payments.
Stock markets end on high note Sunday amid price increase
BGMEA president seeks embassy’s support in attracting Italy’s investment
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan paid a courtesy call on Monirul Islam, Ambassador of Bangladesh to Italy, at the embassy in Rome.
Embassy officials including Economic Counsellor Md. Al Amin and First Secretary (Labour) Ashif Anam Siddique were also present during the meeting.
The discussions centered on the significant trade and investment opportunities between Bangladesh and Italy, with a particular focus on increasing Bangladeshi garment exports to Italy, especially high-value fashion products.
President Faruque provided an overview of Bangladesh apparel industry’s current state, future potential and vision.
He highlighted the industry’s growing shift from basic to high-end products, particularly the fashion items based on man-made fibers and technical textiles.
Since the demand for high-end garments is significant in the Italian market, there is a considerable opportunity for Bangladesh to export such goods to Italy, he observed.
He emphasised the potential investment sectors for Italian investors, including non-cotton textiles, food and agro-processing, IT, light engineering, leather, and shipbuilding.
The BGMEA leader sought the support from the Embassy to promote bilateral trade and investment, especially attracting investments from Italy in the promising industrial sectors in Bangladesh.
Highlighting the direct flight between Dhaka and Rome, Faruque emphasised its significance in enhancing business communication.
He called upon the envoy to streamline consular services and simplify the visa obtaining process for businessmen, with the aim of fostering increased business interactions.
The BGMEA president called on Ambassador Monirul Islam to facilitate collaboration between BGMEA University of Fashion and Technology (BUFT) and fashion institutes in Italy to enhance the skills of BUFT students.
Interest rate for April set at 13.55%, for consumer loans add 1%
The interest rate on bank loans for April based on the ‘Six-Months Moving Average Rate of Treasury Bills’, SMART system has been announced by Bangladesh Bank.
The Banking Regulation and Policy Department of Bangladesh Bank (BB) issued a circular in this regard on Sunday.
The SMART increased by almost 1 percent to 10.55 percent in March, from 9.61 percent in February and 8.68 percent in January.
Stock markets end on high note Sunday amid price increase
Banks will be allowed to add a maximum 3.0 percent to the SMART number when signing loan agreements in April, down from 3.5 percent in March.
As a result, the interest rate on bank loans will be charged a maximum of 13.55 percent in April, while the interest rate on consumer loans will be a maximum of 14.55 percent as a bank can charge a 1.0 percent supervision fee for consumer loans.
The interest rate on bank loans in March was 13.11 percent, while it was 14.11 percent on consumer loans. Before that in February, it was 12.43 percent and 13.43 percent. In January this interest rate was 11.89 percent and 12.89 percent.
As the SMART rate increased more than expected in March, the BB reduced the 'SMART' margin rate that banks are allowed to add by 0.50 percent in the interest of consistency with the monetary policy. The BB cut the margin by 0.25 percent in February.
Govt has no complete list of public services against which it levies fees or charges: Finance Ministry document
As per the new guidelines, the margin added for pre-shipment export loans and agricultural and rural loans will be a maximum of 2.0 percent in April, which was 2.50 percent in March.
Generally, the loans taken from banks for purchasing personal and consumer goods such as car loans, housing loans, and education loans, including refrigerators, TVs, computers, etc., are consumer loans.
Talking to UNB, executive director of the Policy Research Institute Dr Ahsan H. Mansur said that the central bank has no choice other than increasing interest rates to control inflation.
"The interest rate hikes would continue till the inflation rate comes down to 5-6 percent, only then will the interest rate stabilise," he explained.
During this period, industries and personal borrowers will suffer, but they must face the reality. Through this hardship, the economy will gain strength and stability.
Stock markets end on high note Sunday amid price increase
The prices of stocks of almost all companies listed at the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) showed an upward trend on Sunday.
The stock showed this upward trend on the first working day of the current while the prices of stocks and the index of both the markets fell last week, according to market data.
Last week, out of the four trading days, the prices of stocks fell in the first three working days. However, the price increases slightly on the last working day of the week. As a result, the stock market was bullish for two consecutive working days.
No reason for deteriorating stock market situation, said Brokers’ Association
Since trading started in the stock market on Sunday, the share and unit prices of most of the companies increased. The share prices of most companies continue to rise throughout the trading period. As a result, the day's trading ended with a big rise in the index.
The end of the day's trading shows that the prices of 273 companies have increased on the DSE. On the contrary, the price of 74 companies has decreased. The price of 49 companies remains unchanged. In this, the main price index of DSE DSEX increased by 51 points to 5829 points.
The DSE-30 index, which consists of 30 companies, has increased by 10 points compared to the previous day and stands at 2021 points. And the DSE Shariah index rose by 11 points to 1,266 points compared to the previous day.
Along with the increase in all indexes, the volume of transactions on DSE also increased. Tk467 crore was traded in DSE, while Tk411.08 crores were traded on the previous working day. Accordingly, the transaction has increased by Tk55.92 crore.
Shares of Central Pharmaceuticals contributed the most to this transaction. The shares of the company were traded worth Tk 24.73 crore. Shares of Shahinpukur Ceramics in the second place were traded worth Tk 23.43 crore. Asiatic Laboratories is in third place with a share transaction of Tk 20.55 crore.
Rally in banking stocks drives DSE index to 16-month high
The country’s other stock market Chittagong Stock Exchange (CSE) overall price index CASPI increased by 75 points. The prices of 123 companies out of 211 have increased. In contrast, the prices of 66 decreased and 22 remained unchanged. At the end of the day, the volume of transactions at the CSE stood at Tk11.92 Crore.
Sonali Life Insurance's CEO removed
Mir Rashed Bin Anam has been suspended and removed from the post of chief executive officer (CEO) from Sonali Life Insurance Company Ltd, known as Sonali Life.
According to official sources, the Insurance Development and Regulatory Authority (IDRA) in a letter in this regard on March 28 approved a decision of the board of directors of the Sonali Life Insurance, which was taken on March 14 this year.
Earlier, the Rashed was appointed as CEO of the Sinali Life on April 24 in 2022. But a move was initiated by the Sonali Life authority to remove him from the CEO post after his “Master of Business” degree certificate was proven to be fake.
Rashed could not be contacted as he has been in jail since March 14 in a money embezzlement case.
Sources said a three-member investigation committee, formed by the Sonali Life authority, found the Master of Business certificate, received from University of Technology Sydney, fake.
In addition, a huge misappropriation of funds by the CEO was also found by the investigation committee, said a source at the Sonali Life Insurance Company.
Envoy Textiles’ 28th AGM held, Shehrin Salam dismissed from board, Tanvir re-elect MD
Envoy Textiles Limited has conducted its 28th Annual General Meeting (AGM) amid critical outcomes for its leadership and board structure.
Tanvir Ahmed was emphatically re-elected as Managing Director (MD) for another term of five years, receiving a unanimous vote of confidence from the shareholders. He got a total of 10 crore 63 lakh 83 thousand 178 votes in his favour.
Summit Group’s 3 power plants receive nod for further 5 years extension
The AGM, held in a hybrid format at Gulshan Shooting Club, Dhaka, on Thursday, was chaired by Kutubuddin Ahmed, the founder and chairman of Envoy Textiles Limited.
A major reshuffling of the board occurred during the meeting. An overwhelming 99.97 percent of shareholders opposed the re-election of Shehrin Salam Oishee as a director, leading to her removal from the board.
Sunil Daulatram Daryanani, nominated by Epic Garments, was elected as a new director. Furthermore, the AGM reinforced the company’s strategic direction by unanimously re-electing Kutubuddin Ahmed and Sumayyah Ahmed as directors, ensuring a continuity of strong leadership.
Chinese company Song Shin Leather to invest US$ 6 million in Cumilla EPZ
Adding to the backdrop of these decisions, in a previous Extra-ordinary General Meeting (EGM) held on March 2, 2024, Shehrin Salam Oishee was also not elected as Deputy Managing Director (DMD), indicating a significant shift in the company's executive leadership dynamics. These developments underscore a period of transition and strategic realignment for Envoy Textiles Limited.
Govt has no complete list of public services against which it levies fees or charges: Finance Ministry document
The government of Bangladesh has no complete list of public services against which it levies fees or charges.
“There are thousands of public services against which the government levies fees or charges, but there is no complete list of such fees and charges and when those were imposed,” according to an official document of the Finance Ministry.
According the official document titled ‘Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)’ of the Finance Division of the Finance Ministry, the government has partially set up an online database of all non tax revenue (NTR) items with the fees, charges or prices and their dates of imposition.
“This partial database has opened scope with the hope of increasing NTR income manifolds from administrative fees,” it said.
On the other hand, the government is not only focusing on enhanced revenue mobilisation from NTR by raising fees or charges, but also putting its best effort to ensure efficient and satisfactory service delivery.
Take the country forward foiling conspiracies: PM Hasina urges in Independence Day speech
The government has taken numerous initiatives to make service delivery systems paperless and to minimise human deployment in this system. This is one of the key features to building Smart Bangladesh by 2041, the document said.
The government has multiplied public investment during the last one and a half decade, of which the SOEs/Autonomous Bodies (ABs) have enjoyed capital support either in the form of loans or equities.
Loans are registered under government accounts through Subsidiary Loan Agreements (SLAs) and thereby interest is charged.
“However, there is no consolidated database for equity investments of the government and therefore there is no precise estimate for dividend income,” the official document said.
The government has taken the initiative to create an exhaustive database for equity investments in the SOEs/ABs as well as establish a Financial Reporting Council for setting standard financial statements to ensure proper assessment of these organisations.
According to the ‘Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)’, With the economic advancement of the country the scope and volumes of public services have evolved and expanded.
Read more NBR’s three-pronged strategy to boost revenue collection
Government organisations are engaged in delivering various new services in new forms to the public.
The government has taken initiatives to explore such novel and voluminous services against which fees/charges may be collected through organising stakeholders’ consultation workshops, seminars, etc.
As per the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division, some Tk 5343 billion will come from tax revenue sector in the 2024-25 fiscal year and Tk 6463 billion in 2025-26 fiscal year.
In the next two fiscal years, the National Board of Revenue (NBR) will provide Tk 5095 billion and Tk 6171 billion.
From the Income Tax wing, the collection will be Tk 1753 billion for the next fiscal while Tk 2123 billion for 2025-26 fiscal, and the collection from import duties will be Tk 1511 billion and Tk 1830 billion respectively.
From the VAT and supplementary Duties, the revenue collection will be Tk 1831 billion and Tk 2218 billion respectively.
The non-NBR tax for the 2024-25 fiscal and 2025-26 fiscal will be Tk 248 billion and Tk 292 billion respectively with non-tax revenue collection will be Tk 529 billion and Tk 634 billion respectively.
The target for running 2023-24 fiscal is Tk 5000 billion with Tk 4500 billion from tax revenue. Of the total amount, Tk 4300 billion will come from NBR through Tk 1480 billion from income tax, Tk 1275 billion from import duties, Tk 1545 billion from VAT and supplementary duties. Some Tk 200 billion will be collected from the non-NBR sector while Tk 500 billion from the non-tax revenue sector.
Young entrepreneurs must step up to break the hold of syndicates: DG of Consumer Rights