local-business
Investors’ financial literacy must to boost capital market: Commerce Minister
Commerce Minister Tipu Munshi today said that both financial literacy and good business organizations are must to boost investment in the capital market.
The stock market is a crucial sector for the country’s economy, so knowledgeable investors can drive the capital market to be sustainable, he said.
The minister said this while speaking as the chief guest at the inaugural session of the Arthosuchak Capital Market Expo-2023, held at Institute of Diploma Engineers’ Bangladesh (IDEB) in Dhaka.
Tipu Munshi said that more than 50 percent of money is taken from the capital market in developed economies.
“We don’t have that situation in our country. Loans are taken from banks, which is creating several problems in the banking sector. If even 50 percent of the money came from the capital market, business and trade in our country are bound to improve,” the minister said.
A group with vest interest is cleverly defining the country’s political and economic development – spreading rumours and lies and trying to mislead people, the minister said.
Read more: BSEC working to enhance financial literacy for capital market investors: Prof Shibli
“The country has progressed so much, and they say, it is not right. But they can no longer deny the visible improvement. Those who are doing this, they do not want development of this country,” Munshi said.
Professor Shibli Rubayat-Ul-Islam, chairman of BSEC, attend the function as special guest, while Ziaur Rahman, editor of Arthya Suchak presided over the program.
Chairman of Dhaka Stock Exchange (DSE) Md Eunusur Rahman, Chittagong Stock Exchange (CSE) Chairman Asif Ibrahim, Bangladesh Publicly Listed Companies Association (BAPLC) President Anis Ud Dowla, Bangladesh Merchant Bankers Association (BMBA) President Sayedur Rahman and Dhaka Brokers Association (DBA) President Richard De Rosario, among other, spoke in the function.
Read more: IMF for capacity building of capital market in Bangladesh
Nagad to feature in Philip Kotler's book 'Essentials of Modern Marketing'
Mobile financial service provider Nagad will feature as a case study in the Bangladesh edition of world-leading marketing guru Philip Kotler's upcoming book "Essentials of Modern Marketing."
Tanvir A Mishuk, founder and managing director of Nagad, has worked as a case co-author for this book.
Northern Education Group, a strategic partner (Bangladesh) of Kotler's organisation Kotler Impact and World Marketing Summit Group, recently made the revelation.
Read more: FY23: DPE to sign new deal with Nagad for stipend disbursement
Professor Kotler along with his associates will give a new dimension to Essentials of Modern Marketing by incorporating academic case studies of different independent organisations worldwide.
Nagad, the ICT Division, the Ministry of Land, Grameenphone and other organisations from Bangladesh have had the opportunity to add their cases to this book.
Kotler's "Marketing Management" is a widely used book in today's world.
Essentials of Modern Marketing covers up-to-date and insightful marketing issues. Apart from this, the book focuses on how to use different tools or techniques, rather than on product marketing.
Read more: Nagad wins UK-based Global Brand Award 2022
Nagad secured its place in the Bangladesh edition of Essentials of Modern Marketing for its "timely innovations and smart marketing," the MFS said in a statement.
About Nagad's inclusion in Kotler's upcoming book, Mishuk said: "Such an achievement is a source of inspiration for us. Securing a position in Philip Kotler's book is a recognition of what Nagad has done in just three and half years in taking the country's digital financial services to a new height."
Bangladesh Bank raises dollar exchange rate by Tk 1 to Tk 100
Bangladesh Bank (BB) on Wednesday increased exchange rate of a US dollar by Tk 1 to Tk 100.
Now, those who will buy dollars from the central bank will have to pay Tk100 for each US dollar.
Read more: Exporters to get slightly higher rate of Tk 102 for one US dollar
The central bank increased the dollar price within a month. Earlier, the central bank fixed exchange rate of US dollar at Tk 99 on December 5.
It says that the price of the dollar has been increased in line with the market price.
Central bank spokesperson Masbaul Haque told UNB that the dollar price has been increased to match the market price and it is part of regular initiative.
Read more: Remittance: Bangladesh Bank tells banks to provide Tk 107 per dollar
BGMEA signs deal to improve health status of RMG workers
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Global Alliance for Improved Nutrition (GAIN), a Switzerland-based international organisation, signed a Memorandum of Understanding (MoU) on Wednesday to provide better nutrition to the apparel sector workers.
The two sides intended to improve the health status of the country’s RMG workers, which will have a positive impact on the lives of the workers in Bangladesh, according to a press release.
Faruque Hassan, President of BGMEA, and Dr. Rudaba Khondker, Country Director of GAIN, signed the MoU at the BGMEA office on behalf of their respective sides, it said.
Read more: BGMEA, GarmentTechBD to collaborate in improving supply chain management skills
Mohammad Monower Hossain, joint secretary of BGMEA, Moniruzzaman Bipul, Portfolio Lead, Drivers of Food Systems Change, GAIN, G.M. Reza Sumon, Project Manager, GAIN, and others were present on the occasion.
Under the MoU, there will be collaboration to create an enabling environment for ensuring the proper nutrition of the RMG workers in the future, it said.
The two sides will provide technical guidance to strengthen the institutional capacity of the National WFN Alliance for scaling up nutrition activities for workers’ well-being.
Read more: BGMEA, GarmentTechBD to collaborate in improving supply chain management skills
Also, they will make collective approaches and mechanisms to improve workers' access to affordable, nutritious and safe food by establishing a Fair Price Shop (FPS) at factory premises, the press release added.
Measures in place to ensure supply of essentials in Ramadan: Tipu Munshi
Commerce Minister Tipu Munshi said on Wednesday that the initiative has been taken to stock seven daily essentials and ensure adequate supply to keep their prices stable during the fasting month of Ramadan.
The minister said this while speaking at the 5th meeting of the ‘Task Force on Review of Commodity Prices and Market Situation’ held at the conference hall of the Ministry of Commerce at the Secretariat on Wednesday.
Read more: Govt to soon fix prices of 9 daily essentials
He said necessary measures have been taken to ensure supply of edible oil, sugar, lentil, onion, dates, rice, and wheat as per the demand.
He said despite some difficulties in LC opening due to the current global situation necessary action has been taken to disburse foreign currencies through banks for LC opening to facilitate imports of essential commodities.
“The government of India has been informed not to stop the export of some essential items without prior notice. In addition, the Indian government has ensured supply of essentials as per Bangladesh's requirement,” the minister said.
He reassured that there will be no shortage of the essential commodities and the prices will remain normal considering all these aspects.
“Market monitoring will be intensified to keep the situation normal and there is no need to buy large quantities of these goods at once before the start of the Ramadan. The country's media can play an important role in creating public awareness in this regard,” the minister said.
Read more: Cabinet asks for a realistic assessment of price situation of essentials and tasks ahead
Prime Minister's Advisor on Private Industry and Investment Salman F Rahman attended the meeting while Senior Secretary of the Ministry of Commerce Tapan Kanti Ghosh presided over the programme.
Bangladesh Trade and Tariff Commission Chairman Mahfuza Akhtar, Bangladesh Competition Commission Chairperson Pradeep Ranjan Chakraborty, Bangladesh Trading Corporation of Bangladesh (TCB) Chairman Brigadier General Md. Ariful Hasan, Director General of National Consumer Rights Protection Directorate AHM Shafiquzzaman, NBR’s representative Khandkar Nazmul Haque, Director (Foreign Exchange Operations) of Bangladesh Bank Abdul Haque, First Vice President of FBCCI Mostafa Azad Chowdhury Babu, representative of Consumers Association of Bangladesh (CAB) Kazi Md. Abdul Hannan, representatives of TK Group, City Group and various intelligence and security agencies were also present at the meeting.
5% cut in VAT on imported edible oil extended till April 30
The government has extended the reduced 5 per cent value-added tax (VAT) on edible oil until April 30, 2023.
The extension will be effective from January 1, after the date of the earlier notice in this regard that expired on December 31, said a notification issued by the Finance Ministry on Monday.
Read more: 50 percent edible oil to be produced in country by next 3 years: Agri Minister
The National Board of Revenue (NBR) slashed the VAT on soybean oil and crude palm oil from 15 per cent to 5 per cent during imports and exempted the VAT at the production and trading stages in March last year.
The government decided to cut VAT on edible oil amid growing concern among consumers over price hike in edible oil and essential commodities.
Walton opens special showroom in Narayanganj
A special distributor showroom of Walton was recently opened at Rupganj in Narayanganj.
All Walton electronics, electrical, home and kitchen appliances, and digital devices are now available at Purbachal Shitalaksha Electronics at Pitalganj, Bhaktabari.
Read: Walton launches 1st smartphone of its new series 'Orbit'
Textiles and Jute Minister Golam Dastagir Gazi, also parliament member from Narayanganj-1, inaugurated the showroom. Walton Hi-Tech Industries Managing Director and CEO Golam Murshed was also present.
Popular film actress Mousumi, actor Amin Khan, cricketer Mehedi Hasan Miraj and actor Mamnun Emon also joined the event.
Bangladesh earned $27.22b from exports in July-Dec amid new records
Bangladesh exported goods worth $27.22 billion in the first six months till December of the current fiscal year 2022-23 amid a growing crisis of foreign exchange, according to an official report.
The country received $10.37 billion from exports only in the last two months (November and December), which is the highest ever export earnings in two months.
According to the Export Promotion Bureau (EPB), Bangladesh exported goods worth $5.37 billion in December, which is also the highest single-month export earnings.
Read More: Bangladesh's ASM Packall Export to invest $4.8m in Mongla EPZ
In November 2022, the export earnings crossed $5 billion for the first time. In December, the export earnings made another record.
The export earnings in December 2021 were $4.9 billion. The export grew by 9.33 percent year-on-year in December this year.
The readymade garment contributed the highest in the export earnings as usual.
Read More: July-November: Bangladesh’s exports to major countries show "encouraging growth"
The export earnings from the ready-made garments increased by 15.35% year-on-year in December from $4.04 billion in December 2021 to $4.67 billion in December this year.
Faruque Hassan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the apparel sector has seen good growth in December due to a unit price hike.
The contribution of the apparel sector soared due to good prices and the increase in the ratio of high-end products in recent times, he said.
Read More: Export of jute products a boon for Satkhira women
He also said that Bangladesh witnessed a rush of orders after the post-Covid-19 pandemic period due to the increased credibility of the country keeping factories operational during the pandemic.
He said now garment makers are exporting jackets at prices above $40 per piece, against previous $30.
The export earnings were $3.91 billion and $4.36 billion in September and October this year. The export was registering a 14.70 percent rise to bag $3.98 billion year-on-year in July, thanks to the good performance of the apparel sector.
Read More: Bangladesh seeks zero tariff on apparel exports to US at 6th TICFA meeting
Bangladesh bagged $4.60 billion through exports in August, registering a 36.18 percent year-on-year growth while it slipped by 6.25 percent (Y-o-Y) to $3.91 billion in September as the flow of orders for garments slowed amid higher inflation and the Russia-Ukraine war.
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.