United News of Bangladesh

Ethiopian Airlines, Africa's leading carrier, has introduced a special buy-one-get-one-free (B1G1) ticket promotion for flights from Dhaka to all its global destinations, marking its entry into the Bangladesh market. The airline will launch five weekly flights on the Addis Ababa–Dhaka–Addis Ababa route, starting with its inaugural flight from Addis Ababa on November 2, arriving in Dhaka on November 3. This promotion will be available from November 3 to 18, 2024, with tickets to be purchased by October 20, according to a press release. “We wanted to present an attractive offer to our passengers, and we believe this promotion will encourage Bangladeshi travelers to experience the world-class service of a Star Alliance airline,” said Shohag Hossain, managing director of Rhythm Group, Ethiopian Airlines' General Sales Agent (GSA) in Bangladesh. He stated that passengers must purchase tickets by October 20 and fly from Dhaka by November 18 to take advantage of the offer; however, they can select any date for their return flight.

Investors of the Dhaka Stock Exchange (DSE) have called for the resignation of Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood, citing his inability to manage the volatile stock market. The demands came after share prices of various companies plummeted, prompting widespread frustration among investors. Many blamed the BSEC chairman for failing to provide necessary support to institutional investors, which they claim has led to market instability. Protesters demanded a task force, like the one formed for the banking sector, to investigate the irregularities. They rallied outside the old DSE building in Motijheel on Thursday morning. Read: Stock market bullish on second day of lifting floor price Protestors marched from Motijheel to Agargaon, eventually staging a sit-in outside the BSEC headquarters, reiterating their demand for Maqsood’s resignation.  On Wednesday, at around 4:30 pm, investors from various organizations gathered outside the Investment Corporation of Bangladesh (ICB) and announced the ‘Long March’ to pressure the regulatory body. Read more:Dhaka Stock Exchange gains Tk 6,749 crore in market capital Earlier that day, members of the Bangladesh Capital Market Investors Oikya Parishad had formed a human chain in front of the old DSE building, underscoring the growing frustration with the market regulator.     

In a significant move to address the ongoing liquidity crisis in Bangladesh's banking sector, three financially stable banks have extended loan support to their weaker counterparts. This initiative is aimed at bolstering the stability of the financial system, said Bangladesh Bank Spokesperson Husne Ara Shikha on Wednesday. According to the central bank, City Bank, Mutual Trust Bank (MTBL), and Bengal Commercial Bank have collectively provided Tk 945 crore in liquidity support to First Security Islami Bank (FSIBL), Global Islami Bank and National Bank. FSIBL is set to receive some Tk 300 crore, with City Bank, MTBL, and Dutch-Bangla Bank Limited (DBBL) acting as the donating banks. Social Islami Bank Limited (SIBL) will receive a similar amount from City Bank and MTBL. Besides, Global Islami Bank and National Bank have also received their respective allocations from Eastern Bank Limited (EBL) and the previously mentioned donor banks. National Bank has received contributions from City Bank, MTBL and Bengal Commercial Bank. The liquidity injection has been initiated to support these banks in overcoming the ongoing cash crunch. Some banks are still in the process of completing necessary documentation before extending further support to other affected institutions. Ongoing Liquidity Crisis The liquidity crisis in Bangladesh’s banking sector has been a growing concern for regulators. On August 11, Bangladesh Bank imposed a limit on cash withdrawals from banks to manage the crisis effectively. However, the restriction was lifted on September 7, yet several banks continue to face liquidity shortfalls. On September 24, Bangladesh Bank published the current accounts of nine private sector banks operating with the central bank, revealing a deficit that had surged to Tk 18,167 crore. The banks listed included First Security Islami, Social Islami, National, Union, Islami Bank Bangladesh, Bangladesh Commerce, Padma, Exim and ICB Islamic Bank. This crisis has prompted swift action from both regulators and financially stable banks, emphasising the need for continued monitoring and targeted support to ensure the stability of the banking sector.

The general point-to-point inflation rate eased further in September as it reached 9.92 percent down from 10.49 percent in August, 2024. Both food and non-food inflation also saw a falling trend in this tenure. ADB projects inflation in Bangladesh to rise to 10.1% in FY 2024-25 According to the latest data of the Bangladesh Bureau of Statistics (BBS), the food inflation declined to 10.40 percent in September down from 11.36 percent in August, 2024, while the non-food inflation rate in September fell further to 9.50 percent down from 9.74 percent in August, 2024. The general point-to-point inflation rate both in urban and rural areas also declined last month. The point-to-point inflation in rural areas in September was 10.15 percent down from 10.95 percent in August, 2024. Bangladesh Bank hikes its key policy rate again targeting inflation On the other hand, the point-to-point inflation rate in urban areas in September was 9.83 percent in September down from 10.01 percent in August, 2024. The wage rate index in September witnessed an uptrend with 8.01 percent up from 7.96 percent registered in August, 2024.  

A technical glitch in the Bangladesh Bank server has caused disruption in inter-bank transactions, affecting the settlement of all clearing cheques on Monday. As of 5:00 pm Tuesday, the issue had yet to be resolved, leaving a backlog of pending cheque clearances. Bangladesh Bank’s Executive Director and spokesperson, Husneara Shikha, confirmed the disruption, saying there was a problem with cheque clearing on Monday due to a technical error in the central bank’s server. As a result, the cheques that arrived yesterday could not be processed. Bangladesh Bank Governor has assured liquidity crisis resolution for pvt banks: Abdul Awal Mintoo The central bank’s technical team is currently working to address the issue, and Shikha expressed optimism, saying they hope the problem will be resolved very soon. However, no exact timeline has been provided. Bangladesh Bank hikes its key policy rate again targeting inflation  

Prominent businessman Abdul Awal Mintoo today said that Bangladesh Bank Governor has assured private commercial banks of resolving their ongoing liquidity crisis within a short time. “There are various problems in the banking sector. We have discussed these with the central bank governor and sought cooperation. The governor has assured us of all possible assistance so that the banks can manage their activities smoothly,” Mintoo said. He made the statement after a meeting with the Bangladesh Bank governor on Thursday, where they addressed the current crisis in the banking sector. Mintoo, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Chairman of National Bank Limited (NBL), emphasized the need for liquidity support from the central bank. “We need as much liquidity support as possible within the framework of the banking law,” he said. “If Bangladesh Bank provides this support, our liquidity problem should be resolved by December.” When asked about the challenges facing banks, Mintoo acknowledged that many institutions, including NBL, are struggling with default loans and cash flow issues. “NBL has the same problems that other banks are facing,” he noted. Mintoo also highlighted NBL’s strategy to recover defaulted loans through legal action. “We will take the necessary steps, including going to court, to recover NBL’s defaulted loans.” Responding to a question on interest waivers, Mintoo revealed that the issue had been discussed with Bangladesh Bank. “The central bank has waived interest, but we’ve also talked about potentially reversing this decision. Any resolution will be made in accordance with banking regulations,” he added.  

The Asian Development Bank (ADB), in its latest outlook, has projected that inflation in Bangladesh will rise to 10.1 percent in the fiscal year 2024-25, a significant increase of 3.1 percentage points from its previous estimate made in April. The Bangladesh Bureau of Statistics (BBS) recently released data indicating that general inflation stood at 10.49 percent in August 2024, down slightly from 11.66 percent in July. In comparison, inflation was 9.92 percent in August 2023, 9.52 percent in August 2022, and 5.54 percent in August 2021. The ADB's forecast attributes the anticipated rise in inflation to ongoing supply-side disruptions and higher import costs resulting from currency depreciation. The international lender expects inflation to remain in double digits through the end of FY 2024-25. The former government, ousted on August 5 following a mass uprising, had set a target to reduce inflation to 6.5 percent for this fiscal year after it surged to 9.7 percent in FY 2023-24. Despite these efforts, elevated food and non-food prices in the first half of FY 2024-25 have been pushing inflation higher, exacerbated by supply chain issues and increased import costs. According to the ADB, these factors will continue to strain consumers, who have already faced persistent inflationary pressures for the past two years. Inflation has remained above 9 percent during this period, impacting household budgets and increasing the cost of living. Despite the ADB's cautionary outlook, there is hope that inflation could ease by mid-2025. Dr. Ahsan H Mansur of Bangladesh Bank expressed optimism that inflation would decrease to a more manageable level of 6-7 percent by March-April of 2025.

US-Bangla Institute of Aviation (UIA), the aircraft engineering and maintenance training center of US-Bangla Airlines, has received approval as a CAAB (Airworthiness) Part 147 Approved Maintenance Training Organization. This approval allows UIA to offer both theoretical and practical training for B1 and B2 type ratings on ATR 72-600 and Boeing 737-600/700/800/900 aircraft, said a press release on Thursday. US-Bangla Airlines began its operations in 2014 with two Bombardier Dash-8 Q400 aircraft on domestic routes. Over the years, the airline has gained the trust of the people of Bangladesh by expanding its fleet to include ATR 72-600, Boeing 737-800, and most recently, the Airbus 330-300, successfully operating across domestic, regional, and international destinations. Since its inception, US-Bangla Airlines has prioritized the training of its workforce, recognizing the importance of skilled employees in sustaining its growing business success. Aviation training, particularly type training, is a costly endeavor that typically requires significant foreign currency reserves due to the need for training abroad, said the release. For many talented young individuals in Bangladesh aspiring to build a career in aviation engineering, expensive foreign training was the only option. However, with UIA’s recent approval, US-Bangla’s engineering staff can now receive this training within the country. Additionally, interested candidates from other airlines will have the opportunity to participate in these certified courses at a nominal fee in Bangladesh.

The price of Hilsa has increased by Tk 200 to 250 per Kilogram (Kg) in Chandpur after the government decided to export Hilsa to India, causing frustration among local consumers. At present on average about 1,000 to 1,200 maunds (1 maund = approx. 38 kg) of Hilsa are landing daily at the Chandpur Fish Landing Center (Big Station Fish Wharf), but the price hike has left many disappointed.  Just a few days ago, the price ranged from Tk 1600 to 1650 per kg. Today it is Tk 1800 to Tk 1850 per kg. This increase is largely attributed to reports of exports to India. The Hilsa fish comes from various water bodies, including the Padma and Meghna rivers, as well as areas like Bhola, Hatiya, Charfession, Ramgati, and Lakshmipur. These fish are transported by trawlers and trucks to various locations, including Kawran Bazar and Uttara in the capital, and northern Bangladesh. According to fish traders such as Amri Hossain Shakha, Ismail Bapari, and others who spoke to UNB at the Chandpur Fish Landing Center , the supply from the Padma and Meghna rivers is notably low  this season, with only 40 to 50 maunds being caught daily. They indicated that the overall supply is insufficient to meet demand. At retail level in Chandpur, a small hilsa weighing just over 1 kg(around 1.1 to 1.2 kg) would cost you upwards of Tk 2000. Last year, the daily supply was much higher, reaching nearly 3,000 maunds during this period, according to traders like Nurul Islam Bakul and Didar Khan. Many locals believe the price increase is due to news of exports to India, while reports indicate that fewer fish are being caught in the rivers this year. Environmental issues, such as river pollution, have also been cited as contributing factors. Residents are expressing their disappointment, stating that they can no longer afford to buy ilish. One elderly woman, Marufa Begum, lamented, “I thought I could eat small ilish this time, but I can’t. The government is sending fish to India, and we can’t afford it anymore.” Overall, the price increases and reduced supply have left consumers frustrated, with many calling on the government to address the situation.

Workers from three factories in Gazipur staged protests on Monday, demanding higher wages and benefits, leading to blockades of the Dhaka-Mymensingh and Dhaka-Tangail highways for nearly an hour. Protests erupted at Golden Refits Garments Limited in Bhager Bazar, Cocola Food Products in Kaliakoir, and Seasons Dresses Limited in Tongi, with workers voicing concerns over issues ranging from attendance bonuses to unpaid wages. At Golden Refits Garments, located in Gazipur’s Sadar upazila, workers refused to start their shifts, demanding improvements in attendance bonuses and pushing for 12 specific demands. To draw attention to their grievances, they blocked the Dhaka-Mymensingh highway in the morning. The factory management eventually conceded to eight of the workers' demands, including increases in attendance bonuses, meal allowances, and night shift pay. Suman Mia, an inspector with Gazipur’s Industrial Police, confirmed the blockade had caused significant traffic congestion. He noted that negotiations between management and workers are ongoing to address the remaining issues and prevent further disruptions. Workers at Cocola Food Products in the Mouchak area protested outside the factory following management's decision to shut down operations indefinitely. The closure came after employees presented 12 demands, including attendance bonuses and annual leave. Tensions escalated as some workers forcefully entered the facility and vandalized property. The protest spilled onto the Dhaka-Tangail highway, briefly blocking traffic. Joint forces arrived to disperse the protesters and arrested three individuals for inciting violence and damaging factory property. Meanwhile, workers at Seasons Dresses Limited in Tongi took to the streets, demanding unpaid salaries for July and August. Starting as a small demonstration around 7 am, the protest grew into a full blockade of the Dhaka-Mymensingh highway by 9:30 am. The traffic halt continued for hours, causing widespread disruption. Mosharraf Hossain, Senior Assistant Superintendent of Gazipur’s Industrial Police, said that efforts are underway to open dialogue between the workers and the factory owners to resolve the wage issues. As of 12:30 pm, traffic on the Dhaka-Mymensingh highway remained at a standstill.