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Scam-hit Islami Bank earns operational profit in 2022, Basic Bank reports loss
Despite criticism of mismanagement and loan scams, the Islami Bank Bangladesh Limited (IBBL) has secured a top position in making operational profit in 2022, according to a Bangladesh Bank report.
The IBBL has now the highest deposit holding in the country. The depositors rushed to withdraw their money from the bank amid reports of loan scams in last November and December.
Banks have prepared financial reports based on their branch office information on disbursed loans and their collection update. The BB report released late Saturday found that the operating profit of most of the banks increased in 2022, compared to the same period of the previous (2021) year.
Also Read: Deposits at IBBL 'completely safe': Bangladesh Bank
According to the report, IBBL is at the top among the banks in gaining operational profit. In 2022 (January-December), the bank made an operating profit of Tk 2,646 crore.
In the previous year in 2021, the profit of the bank (IBBL) was Tk 2430 crore. In 2020, it was Tk 2350 crore.
Among other banks, in 2022, the state-owned Sonali Bank made an operating profit of Tk 2,520 crore. In 2021, it was Tk 2100 crore.
Also Read: IBBL reaches Tk 1.40 trillion deposits, 1.16 trillion investments: IBBL MD
But operating profit is not the actual profit of the bank. Net profit will be calculated after saving provision or safety stock at fixed rate against debt from operating profit and payment of corporate tax. Net profit is the actual profit of the bank.
State-owned BASIC Bank could not make operating profit in 2022. On the contrary, they incurred a loss of Tk 371 crore; Last year also the loss was Tk 80 crore. Apart from this, Citizen Bank has made an operating profit of Tk 2.54 crore in six months. The bank started operations in mid of 2022.
Economist and former adviser of caretaker government Dr. ABM Mirza Azizul Islam told UNB, "Bangladesh Bank is giving special benefits to the defaulters and showing the interest of such loan to the income sector. In this case, the financial report of the bank is being shown well on paper.”
Read More: BB disburses Tk 4000 crore as liquidity support to 5 Islami banks
He also said, "Political commitment and goodwill are needed to restore order in banks."
According to the data of the Central Bank, in the quarter of September 2022, the defaulted loan amount in the banking sector of the country has increased to more than Tk1.34 crore, which is 9.36 percent of the total loan.
DSE market capitalisation increased by Tk4.5 lakh crore in 2022
The market capitalisation of the Dhaka Stock Exchange (DSE) increased by Tk4.47 lakh crore in the outgoing year 2022, as the 250 treasury bonds started trading in the DSE.
Although the index and the share price of most of the companies fell, the market value of 250 treasury bonds and Islamic Sukuk bonds started trading in the capital market for the first time in the DSE.
DSE data shows DSE started trading in 2022 with a market capitalization of Tk 3.14 lakh crore. Then on October 10, 2022, 250 government securities were listed on DSE. The market cap stood around Tk7.73 lakh crore. The market cap slightly decreased to Tk7.61 lakh crore at the end of the year.
Read more: Shakib’s company involved in share manipulation, DSE investigation finds
Among the transaction, the trade volume of the block market was Tk14253.19 crore, which is 6.4 percent of the total transaction. This ratio was 3.97 percent of the total transaction in the previous year. The transactions in the block market have increased compared to the previous year (2021).
The investors in the capital market passed another year, along with frustration and uncertainty in the capital market due to the global recession, which erupted from the Covid-19 pandemic and the Ukraine-Russia war.
Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat –Ul-Islam told UNB that the regulator is working to improve the market situation through diversified products.
Read more: DSE share trading between 10am and 2:30pm from tomorrow
“But the global situation, which is beyond our control, has created uncertainty in several sectors including capital market,” he said.
PM to inaugurate month long DITF-2023 tomorrow
Prime Minister Sheikh Hasina is expected to inaugurate the 27th edition of the ‘Dhaka International Trade Fair (DITF)-2023’ tomorrow (Sunday) with the aim to put up locals products on the international markets.
The largest annual commercial and trade event of the country is going to be held at its permanent venue – “Bangabandhu Bangladesh-China Friendship Exhibition Centre '' – at Purbachal on the outskirts of the capital for the second time.
Prime Minister Sheikh Hasina will inaugurate the fair in person.
Commerce Minister Tipu Munshi disclosed these at a press conference organised by the Commerce Ministry and the Export Promotion Bureau (EPB) at the Friendship Exhibition Centre.
Commerce Secretary Tapan Kanti Ghosh and EPB Vice Chairman AHM Ahsan, Additional Secretary of Commerce Md Hafizur Rahman and Additional Secretary (EPB) Md Abdur Rahim among others were present at the event.
Minister Tipu said the quality of products gets standardised when customers can compare between local and foreign products through the fair.
He said though the fair is not organised for profit, a spot export order of Tk 200 crore was received from the fair the past year.
“We get a chance to put up our products before local and foreign customers through the fair. Though it is located a distance away which created a huge enthusiasm among sellers and buyers,” he said.
He said the country exceeded the target of exports last year and this trend is now upward.
Read more: Month-long DITF ends on Monday as no time extension was sought
“Special initiatives were taken to boost up the export of 10 more products along with the apparel one,” the minister.
Terming the IT sector as prospering, he said some 4 to 5 million dollars were earned from this sector within a few days.
Apart from this demand for light engineering products is increasing on the international market, he said.
This year a total of 331 stalls, including 17 pavilions have been leased out to various local and international organisations.
Previously, it used to be held at Agargaon but it was too small to accommodate the large number of participants and visitors.
The gate of the international trade fair will open at 10 am every day and close at 9 pm. On government holidays, the fair will run till 10pm. Ticket price for the adults has been fixed at Tk 40 while at Tk 20 for minors.
Besides, visitors will get a 50 percent discount on tickets once they book from online.
Read more: DITF 2020: Holiday draws large crowd
The government will provide a transport facility as 70 BRTC buses have been pressed into service in this regard. These will run from Kuril flyover to the fair venue. Visitors will be able to travel in these buses with a minimum fare of Tk 35.
The Dhaka International Trade Fair was first held in 1995. Due to Covid-19 pandemic, it was not possible to organise the fair in 2020.
Traders from 10 countries are participating in the fair this year with 17 organisations.
Trade union leaders, economists for social, environmental compliance programmes in tannery industries
Trade union leaders and economists on Thursday (December 29, 2022) urged the tannery owners to implement social and environmental compliances for the welfare of the industry and the workers.
They said the European Union (EU) and the US are not buying leather from Bangladesh as most of the tanneries are yet to obtain certificates from Leather Working Group, an organisation of foreign leather buyers, for which the prices of leather are decreasing day by day.
The trade body leaders were speaking at the programme Dissemination workshop on "institutional policy framework in the Tannery Workers Union" in a capital hotel Thursday.
Read more: Tannery workers demand environment-friendly industry
To obtain the certificates, the tanneries will have to implement social and environmental compliance programmes, the speakers at the programme said.
Only so far three tanneries have got the certificates, they added. "And buyers of the EU and the US are buying leather from them."
Social compliance relates to the health, safety and rights of the workers; environmental compliance means conforming to environmental laws, regulations and standards.
Read more: Tanners demand 50-bed hospital in Savar tannery hub for workers’ treatment
Professor MM Akash, chairman of the economics department of Dhaka University, spoke as the chief guest of the programme.
General Secretary of Bangladesh Trade Union Kendra Wahedul Islam Khan, President of Workers Resource Centre Anwar Hossain; President of Tannery Workers Union Abul Kalam Azad and General Secretary Abdul Malek also spoke.
Bangladesh's ASM Packall Export to invest $4.8m in Mongla EPZ
Bangladeshi company ASM Packall Export Industry will set up a garments accessories factory at Mongla Export Processing Zone (Mongla EPZ).
The company will invest $4.8 million, and 400 Bangladeshi nationals will get employment opportunities at the factory.
Read more: Chinese company to invest $ 12.89 million in Mongla EPZ
ASM Packall will produce 1 lakh tons of bags, zippers, elastics, tapes, tags, labels, boards, paper bands, photo cards, bar codes, collar stands, and other products annually.
Ali Reza Mazid, member (investment promotion) of the Bangladesh Export Processing Zones Authority, and Md Ashraful Alam, managing director of ASM Packall Export, signed an agreement Thursday in Dhaka.
Read More: Cotton factory warehouse gutted in Mongla EPZ fire
BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman was present at that time.
FY23: DPE to sign new deal with Nagad for stipend disbursement
The government of Bangladesh will distribute stipends to primary school students through mobile financial services (MFS) provider Nagad for 2022-23 fiscal.
The Directorate of Primary Education (DPE) will sign an agreement with Nagad soon, according to a media statement.
In the last fiscal year, the government paid stipends for education materials to over 1.3 crore primary school children through the MFS provider.
Read more: Nagad upgrades system to offer better services
The government will bring students at PTI Experimental Schools and Shishu Kallyan Trust-run primary schools under stipends in this fiscal year. For this, the DPE will make necessary reforms to primary education stipend distribution-related guidelines.
Muhammad Zahidul Islam, head of public communications of Nagad, said: "We successfully disbursed education stipends and other social safety allowances in the 2021-2022 fiscal at a nominal charge."
"We will continue our services in the current fiscal year as well if we are entrusted with the job."
Read more: BURO partners with Nagad for easier savings, instalment payments
Students are registered on Nagad's digital platform with information from their birth certificates and mobile phone numbers alongside the NIDs of their guardians. So, the students' guardians instantly receive the funds along with cash-out charges in their Nagad wallets once the stipend is disbursed.
BAT Bangladesh keeps topping NBR honours chart
The National Board of Revenue (NBR) Wednesday honoured British American Tobacco (BAT) Bangladesh with the highest income taxpayer award in the others (company) category for 2021-22 fiscal.
The company earned recognition for nine successive years.
NBR conferred the award to BAT Bangladesh during an event in Dhaka; Finance Minister AHM Mustafa Kamal was the chief guest.
Golam Mainuddin, chairman of BAT Bangladesh, received the award.
Read more: BAT Bangladesh scoops up ACES Awards 2022 as 'top sustainability advocate'
"We are humbled to receive the highest taxpayer award again, and as always, we feel proud to have contributed to the development of the country's economy as we sincerely believe the contribution to the national exchequer plays a crucial role in keeping the wheels of the economy running and an essential part of the country's growth journey," Mainuddin said.
During the aforementioned fiscal year, BAT Bangladesh contributed approximately Tk28,280 crore to the government exchequer through VAT, supplementary duty, income tax, and other means, the multinational corporation said.
Grameenphone scores highest taxpayer award in telecom sector for 7th time
Grameenphone has been honoured as the highest taxpayer for 2021-22 fiscal in the telecommunication sector.
The telecom operator attained the recognition for seven fiscal years in a row.
The National Board of Revenue (NBR) conferred the award to Grameenphone during an event Wednesday in Dhaka. Finance Minister AHM Mustafa Kamal was the chief guest at the event.
Yasir Azman, CEO of Grameenphone, received the award.
"During FY22, Grameenphone contributed to the national exchequer as a direct tax of Tk2,490 crore and withholding tax of Tk1,158 crores. Since its inception till September 2022, the total contribution of Grameenphone to the national exchequer is Tk103,497 crores, which includes a contribution to NBR of Tk72,086 crore as direct and indirect tax, withholding tax of Tk11,107 crore, and contribution to the Bangladesh Telecommunication Regulatory Commission (BTRC) of Tk20,305 crore," the operator said.
"Since the ban on Grameenphone's SIM sales in June 2022, the country's telecom sector has been witnessing an overall decline – from recording a total of 184.45 million subscribers in June to 181.67 million in October."
Read more: Q3 2022: Grameenphone reports 6% revenue growth despite ban on SIM sales
"Besides directly hampering the telecom sector, this embargo is also said to have been affecting the company's stock market investors and the country's general image to attract prospective FDIs. NBR is also losing revenue from corporate tax and indirect tax, which includes SIM tax of Tk200 per new customer. Also, BTRC is losing 6.5 percent of Grameenphone's revenue from new customers," the operator added.
Yasir said: "We are grateful to NBR for honouring us with the highest taxpayer award in the telecommunication sector for the seventh consecutive time. Unfortunately, on this very auspicious day, we are unable to serve new customers despite meeting QoS benchmarks set by the regulator."
"We believe this will have an adverse effect on the overall economic development of the country, not only because NBR will lose out on tax revenues but also due to its impact on all other sectors which rely on connectivity and digital solutions. It is important that authorities withdraw the SIM sales ban immediately as this is a counter-productive move towards tax revenues and Smart Bangladesh."
Read more: Grameenphone reports 5.2% revenue growth in 1st half
Reform must to reduce indirect tax burden on lower income groups: Speakers
Speakers at a dialogue said that the income inequality in Bangladesh is widening due to indirect tax burden to lower income groups, while rich people are paying less comparing to their income and wealth.
The speakers said this while speaking at a policy dialogue on ‘Using direct taxation to tackle inequality and boost revenue’ held at BRAC Inn in the capital on Wednesday (December 28, 2022).
Dr. Mohammad Abdur Razzaque, Chairman of Research and Policy integration for Development (RAPID) presented a keynote paper on the topic.
Former chairman of NBR Dr Muhammad Abdul Mazid, Director General of BCS (Tax) Academy MM Fazlul Haque, Professor of DU Dr Abu Eusuf, Finance Division (budget) joint secretary Dr Mohammad Abu Yusuf, ERD Joint Secretary Md Anowar Hossain, among others, spoke in the function.
Read more: Tax return submission deadline extended to January 1, 2023
RAPID Chairman Dr Razzaque explained in the keynote paper that income inequality is widening in society despite growth in manufacturing, agriculture, and other sectors due to an unjust taxation system.
This income discrimination would be more if the reform in the taxation system is not done with a strong commitment to the nation, he pointed out.
“Comparing the small GDP of many other economies in the world, Bangladesh earns only 35 percent of its revenue from direct tax while it is 65 percent from indirect tax. It is expected to be 70 percent revenue from the direct tax, considering the volume of the country’s (Bangladesh) economy like some other countries,” he added.
Dr Razzaque said that recently the NBR announced to increase the share of direct tax from 35 to 70 percent of total revenue – which is a welcome initiative and will drive economic growth and strengthen the government’s ability to provide essential public services.
Read more: Present tax system is not in favour of industrial development: BCI
But the implementation of the target is far behind the projected time, he said.
Dr Abdul Mazid said, “The NBR must be established as a state agency, and not a government agency. As such, NBR should not be dependent on the government. Rather, it should be an independent operator on behalf of the state.”
He emphasized long-term planning to increase revenue collection by reforming Bangladesh's taxation system and the NBR.
Winners of '10 Takar Dour' get bikes from Nagad
Four people have won motorbikes by making the highest weekly scores in a game played on mobile financial service Nagad's app.
The bikes were recently handed over to Tahmina Akhter Lilly, M Hazrat Ali, Akhiful and Rihat Hasan Tuhin in the capital.
Read more: Nagad wins UK-based Global Brand Award 2022
Nagad users played the game under "10 Takar Offer," a mobile recharge campaign, which ran from October 18 to November 14.
Nagad Chief Commercial Officer Sadat Adnan Ahmad, Chief Operating Officer Golam Mortuza Chowdhury, Chief Corporate Governance Officer and Chief Anti-Money Laundering Compliance Officer Nurul Alam, Head of Strategy Department Salahuddin Mohammed Yousuf, Head of Digital Marketing Romael Hasan Wahid, General Manager Abu Sufian Mohammad Khaled, Deputy General Manager (Brand) Ali Ahsan, and Head of Customer Service Kaushik Saha were present at the prize giving ceremony.
Read more: Nagad declares charge-free services for police
Around 148,093 Nagad customers took part in the 10 Takar Dour. Each of the 100 top scorers during every campaign day received a prize of Tk100.
Sadat Adnan said: "Nagad regularly arranges such games for its users to make their leisure time more enjoyable as well as offer them chances to win exciting prizes."