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Bangladesh Bank curtails banks’ power to waive interest on loans
Bangladesh Bank is seeking to curtail the powers of the banks’ board of directors to waive interest on loans without consultations with the relevant departments.
The central bank’s Banking Regulations and Policy Department on Wednesday issued a circular in this regard.
It instructed the banks in case of interest waiver they have to take the opinion of the head of internal control and compliance (HICC) through internal audit department.
Read more: Bangladesh Bank allows export income, remittance through MFS
The circular stated that in essential cases, the opinion of the HICC should be taken through the internal audit department of the bank to confirm the rationale of relaxation of the conditions for collection of funds.
It said that banks can waive interest on loans due to various uncontrollable reasons such as death of the borrower, natural calamities, epidemics, flood, due to distress, or closed project bank loan interest may be waived in whole or in part.
But recently, it has been seen that the banks often waive the interest of various customers without considering these special circumstances.
Read more: Can Bangladesh Bank make depositors feel safe ?
“This may create disinclination among the customers to pay the bank dues within the stipulated time to get the interest waiver facility, which is against the overall credit discipline in the banking sector,” it said.
For this purpose, to create awareness among the customers to pay the bank's dues within the prescribed period, maintain overall credit discipline and protect the customers' interests, the new guidelines should be followed in the waiver of all types of interest.
Bangladesh Bank allows export income, remittance through MFS
Bangladesh Bank has allowed mobile financial service (MFS) providers to repatriate (conversion of foreign currency into local currency) export income and inward remittance.
All authorised dealers will provide encashment certificate to MFS providers against inward remittance, on account of information technology enabled services (ITES) exports.
In order to make it easier to receive foreign exchange, Bangladesh Bank issued a circular stating that all authorised dealers in foreign exchange and all licensed MFS providers are allowed to receive export income on account of ITES exports in association with internationally recognised OPGSPs/digital wallets and/or aggregators having operation in multiple countries.
The Foreign Exchange Policy Department of the central bank issued the notification on Wednesday and sent it to authorised dealers and MFS providers for immediate implementation.
Read more: Towards a cashless society: MFS monthly transactions cross Tk 1.11 lakh crore
The notification said that authorised dealers maintaining settlement accounts will issue encashment certificates in support of inward remittances on request from MFS providers electronically.
In this case, the request needs to be supported by auto-generated information – beneficiary’s name, wallet account number, the amount in taka, date of credit – from a remittance service provider abroad.
Based on their own screening parameters regarding the information, designated authorised dealers shall generate an electronic encashment certificate (as per enclosure A) with QR code accessible to beneficiaries through MFS providers.
Read more: MFS sector led financial transactions during Covid-19 pandemic: Nagad MD
The certificate is intended to be used for income tax purpose only.
Lugang Technology to invest US$ 23 million in Ishwardi EPZ
Lugang Technology (Bangladesh) Limited, a Hong Kong (China) owned company, is going to establish a textile industry at Ishwardi Export Processing Zone (IEPZ).
This fully foreign owned company will invest US$ 22.99 million where 3182 Bangladeshi nationals will get jobs, said a press release issued on Wednesday.
Read more: EPZs saw all-time high export, investment, job growth in FY22: Bepza
The company will produce annually 5,100 tons raw and dyed yarn.
Ali Reza Mazid, Member (Investment Promotion) of BEPZA and Ding Feng, Vice General Manager of Lugang Technology (Bangladesh) Limited signed an agreement to this effect on behalf of their respective organizations on Wednesday at BEPZA Complex in Dhaka.
BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman was present at the signing ceremony.
Read more: BEPZA EZ gets $28m more in investment
Among others, Member (Engineering) Mohammad Faruque Alam, Member (Finance) Nafisa Banu, Executive Director (Administration) Md. Zakir Hossain Chowdhury, Executive Director (Investment Promotion) Md. Tanvir Hossain and Additional Executive Director (Public Relations) Anwar Parvez along with representatives of the enterprise were present at the signing ceremony.
ATAB to host tourism expo Dec 1-3; deal with “Air Astra” signed
Association of Travel Agents of Bangladesh (ATAB) will host a three-day fair titled “Bangladesh International Travel and Tourism Expo (BITTE)” from December 1-3.
The expo will be held at Bangabandhu International Conference Center (BICC) to promote travel and tourism.
A title sponsorship agreement was signed with newly launched domestic airline “Air Astra” at a city hotel on Saturday.
Read: Private carrier Air Astra to start operations in November
ATAB Secretary General Abdus Salam Aref and Chief Executive Officer of the Air Astra Imran Asif signed the agreement on behalf of the ATAB and Air Astra respectively.
ATAB Secretary General Abdus Salam Aref said various international and domestic airlines, hospitals, tourism boards, travel agencies, tour operators, hotels, resorts and cruise liners have confirmed their participation as exhibitors in BITTE.
US Bangla Airlines General Manager (Public Relations) Kamrul Islam, ATAB Vice President Afsia Jannat Saleh, Deputy Secretary General Golam Mahmud Bhuia Manik, Finance Secretary Abdur Razzak, Public Relations Secretary Atiqur Rahman and Cultural Secretary Toaha Chowdhury, among others, spoke.
Can’t control global economy, but want to boost exports: BGMEA president
Despite serious challenges Bangladesh wants to keep its market share in the global apparels market unhurt and give it a further boost by showcasing its innovations and strengths through "Made in Bangladesh Week 2022" that begins in Dhaka on Sunday.
“We all know the situation of the global economy, but we have to do our work. We can’t control the global economy. We even want to increase our market share keeping the current export unhurt,” said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Responding to questions at a “meet the press” event held in a city hotel on Saturday afternoon, he said their intention is to work together with all stakeholders including buyers and brands and hoped that they grow by overcoming those challenges – domestic and global.
Prime Minister Sheikh Hasina will inaugurate the "Made in Bangladesh Week 2022” on Sunday (November 12, 2022) morning.
The week-long event will be inaugurated at the Hall of Fame of Bangabandhu International Conference Center (BICC).
Read: Bangladesh’s apparel export to cross $100 bn by 2030: experts
With the theme “Care for Fashion”, the week-long event "Made in Bangladesh Week 2022” will continue till 18th November 2022.
“We want to brand Bangladesh. We want to showcase our capabilities and new innovations that we have developed in our factories. We want to showcase what we are doing and what we have done in the past several years,” he said.
The BGMEA chief said they are expecting quite a big number of their partners – brands, suppliers, development partners and others to see for themselves what Bangladesh is doing.
After the grand opening, a display zone at the Carnival Hall, titled “Experience the Transformation of RMG towards Sustainability & Innovation”, will remain open till 6 pm, said the BGMEA chief.
The Prime Minister will also launch two coffee table books, on which BGMEA has been working since the beginning of this year.
Money changers can keep Tk 50 lakh max: Bangladesh Bank
Bangladesh Bank in a directive on Thursday said that money changers trading in foreign currency can keep a maximum of Tk 50 lakh cash at hand.
The Foreign Exchange Policy Department of Bangladesh Bank issued a circular in this regard and sent it to the top executives of banks for immediate effect.
According to Foreign Exchange Transactions Guidelines, the maximum stock of cash of a money exchanger must not exceed $25,000 or equivalent at the close of each business day.
If their cash dollar amount is more than this limit then at the end of the day the establishment should deposit it in the foreign currency account of the respective bank. The balance of that account must not exceed $50,000 or equivalent at any point in time.
Read: Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar
The central bank sealed seven unlicensed, illegal institutions on September 27 and 28 due to dollar manipulation in the country.
Before that, 42 companies were served show cause notice due to various irregularities in dollar trading. The licenses of five more establishments have also been suspended.
The latest circular aims to establish a stable foreign exchange market in the country.
Nagad holds workshop to promote breast cancer awareness
Mobile financial services provider (MFS) Nagad recently arranged a workshop to raise awareness of breast cancer among all its employees and their families.
More than 100 employees and their family members attended the workshop online. Later, those at Nagad's headquarters in Banani underwent a health check-up.
Provident Health acted as a programme partner of Nagad to provide them with information about the prevention, screening tests for early detection, and treatment of breast cancer.
Doctors at the workshop said breast cancer is the leading cancer for women in Bangladesh.
According to the World Health Organisation, one in every eight women in the world is at risk of developing breast cancer in the course of their life. About 20,000 women are diagnosed with this cancer every year.
Read: Nagad upgrades system to offer better services
However, 50 percent of them have every chance of cure if diagnosed early and treated appropriately, said physicians at Nagad's workshop.
Shaharear Sayeed, director of human resource and administration at Nagad said, "Dedicated in-house doctors come to our office every week to conduct health tests of our employees and make them aware of various diseases."
"They also regularly conduct workshops on breast cancer to make everyone aware of it."
Walton records loss in 1st quarter
Walton Hi-Tech Industries Monday said it suffered losses in the July-September quarter due to price hikes of materials, higher freight costs, vulnerable market conditions and the devaluation of the taka against the dollar.
The electronics company posted a Tk46.05 crore loss in the first quarter of the fiscal year 2022-2023, and its earnings per share (EPS) dropped to Tk1.52 from the Tk281.12 crore profit and Tk9.28 EPS in the same period last year, according to the unaudited financial statements.
The dollar exchange rate was Tk84.82 in July 2021. But it started to climb upward in May this year. In May, the price in the open market crossed Tk100.
Read more: Q3 2022: Grameenphone reports 6% revenue growth despite ban on SIM sales
So, Walton said, it suffered foreign currency losses during the current fiscal year's first quarter amounting to Tk262.45 crore, which was only Tk10.11 crore in the same period of the previous fiscal year.
Read more: Walton CEO, CMO score Bangladesh C-Suite Awards
Islami Bank opens Bonpara branch in Natore
Islami Bank Bangladesh inaugurated its Bonpara branch in Natore Monday.
Md Abdul Quddus MP inaugurated the 392nd branch of the bank as chief guest, according to a media statement.
Read: Islami Bank holds webinar on Shariah compliance
Mohammed Monirul Moula, managing director and chief executive officer of the bank, was also present.
Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic shariah.
Established in 1983 as the first Islamic bank in Southeast Asia, it is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.
Nagad CBO scoops up Bangladesh C-Suite award
Sheikh Aminur Rahman, chief business officer (CBO) of Nagad, has been honoured with the "Business Director of the Year" award for his contribution to the corporate sector.
Bangladesh Brand Forum (BBF) initiated the first Bangladesh C-Suite Awards 2022 to recognise and celebrate the achievements of Bangladeshi business leaders.
The Bangladesh C-Suite Awards were recently given in 16 categories to 16 top executives of Bangladesh.
Read: Walton CEO, CMO score Bangladesh C-Suite Awards
Aminur won the award because of his role in helping mobile financial services provider (MFS) Nagad's daily "transactions reaching Tk1,000 crore and creating a customer base of more than Tk6 crore," the MFS said in a media statement.
The Nagad CBO is also the founder of the platform Corporate Executive Club, through which he is working to bring all community leaders, including those from the FMCG, IT, telecom, pharmaceutical and banking industries together.
The Nagad CBO previously won many national and international awards, such as the Money 2.0 – Outstanding Leadership Award, LFB Leadership Excellence Award, and Telenor Top Talent.