United News of Bangladesh

Mutual Trust Bank PLC (MTB) has invested in treasury bills, bonds and lending to some other banks facing liquidity shortfalls under the central bank guarantee in the face of investment and the corresponding private sector credit growth slowing down in the economy, according to Syed Mahbubur Rahman, MTB Managing Director & CEO. “The MTB has enough liquidity to invest but the bank was forced to invest in bills/ bonds as private credit growth decreased due to the central bank’s tight monetary policy,” he said while speaking at a 'Meet the Press' on the occasion of the 25th founding anniversary of the bank. Mahbubur said the MTB has maintained good governance strictly in each sector's operations, which has been possible due to not interfering with operations of the bank. As a result, despite the liquidity crisis in many banks, the deposits in the MTB increased regularly, he pointed out. He reflected on MTB's 25-year journey, highlighting the bank’s role in strengthening Bangladesh’s banking sector and economy. The bank set up its strong connection with over 1.3 million customers. As of today, MTB operates with 120 branches, 41 sub-branches, 336 ATMs (including 28 CRM), 3,117 POS terminals, 182 Agent Banking Points, 3 Cash Deposit Machines (CDM), 8 Air Lounges, and 4 Foreign Exchange Booths to support the customers. The MTB organised different programs including honoring the contributions, customers, and stakeholders across the country to celebrate the founding.

The revenue collection of the National Board of Revenue (NBR) suffered in the first three months of the running 2024-25 fiscal. The total collection in this period, the first quarter or Q1, saw a 6.1 percent fall compared to the same tenure of the last fiscal. According to the released data by the revenue collecting authority, the total revenue collection target for the first three months of the fiscal (July-September) was Tk 96,499.90 crore, but it managed to collect Tk 70,902.90 crore. In the last fiscal, the corresponding amount was Tk 75,487.70 crore. According to the data, the revenue collection target for September was Tk 39,324 crore. But NBR managed to collect only Tk 29,002.68 crore. A senior NBR official told UNB revenue collection is usually slow during this period of every fiscal year, but this time it has also been affected by the political upheaval in the wake of the Anti-Discrimination Students movement that started in the first week of July, eventually leading to a change in government and putting the country in a transition period that continues till today. Throughout the month of July and till the first week of August in particular, the movement was at its peak leaving widespread violence and bloodshed in its wake, as the government struggled to contain it. There was even a curfew in place from July 19 to August 5. Almost everything was closed, or heavily regulated. These had naturally impacted the collection of customs and taxes, said the official, who spoke on condition of anonymity considering the sensitivity of the situation. The uncertainty in the business sector continued even after the change of government in the first week of August. “Due to these reasons, the customs and tax officials said that they could not collect the desired revenue,” the official said. A tax collection target of Tk 4,80,000 crore in the 2024-25 fiscal was fixed for NBR by the last government. NBR officials feel that the pace of tax collection will pick up towards the end of the year. It may be mentioned that Bangladesh is in a $4.7 billion loan program from the International Monetary Fund (IMF). Two major conditions related to revenue collection attached to the programme are i) Increasing revenue collection by 1.5 percent of GDP every year, and ii) removal of all tax exemptions by 2027. There is talk of a strategy to increase revenue collection that will be decided by next December.

The Ministry of Finance has proposed the appointment of new managing directors (MDs) for 10 state-owned banks as part of ongoing reforms in the banking sector, officials announced on Monday. Once the proposal receives approval from top government officials, an official notification will be issued, according to ministry sources. The interim government recently removed the MDs of six state-owned banks and four specialized banks, leaving these key posts vacant for over a month. The move is part of a broader effort to revamp the banking sector. Among the proposed appointments, Shawkat Ali Khan, currently the MD of Bangladesh Krishi Bank, has been recommended for the top position at Sonali Bank. Probashi Kallyan Bank MD Mojibur Rahman has been proposed as MD of Janata Bank, while Anwarul Islam, former deputy managing director of Janata Bank, is recommended for Agrani Bank. Finance Ministry appoints MDs at 4 state-owned specialised banks Other recommendations include Abdur Rahim, Deputy Managing Director of Rajshahi Krishi Unnayan Bank, for Rupali Bank; Jasim Uddin, former deputy managing director of Janata Bank, for Bangladesh Development Bank; and Kamruzzaman Khan, former deputy managing director of Janata Bank, for the role of MD at Basic Bank. In addition, the ministry has proposed new MDs for four specialized banks. Sonali Bank Deputy Managing Director Mir Mofazzal Hossain is recommended for Ansar-VDP Development Bank, while Salma Banu, Deputy Managing Director of Bangladesh Krishi Bank, is set to take the helm at Palli Sanchay Bank. Furthermore, Sonali Bank Deputy Managing Director Sanchita Binte Ali has been recommended as MD of Bangladesh Krishi Bank, and Bangladesh Krishi Bank Deputy Managing Director Chanu Gopal Ghosh has been proposed for the top position at Probashi Kallyan Bank. This latest reshuffling comes after the previous MDs of these banks were collectively removed on September 19, as part of the government’s efforts to reform the banking sector.

The Bangladesh Bank has announced the reissuance auction of a 15-year Bangladesh government Treasury Bond, scheduled for Tuesday. A media release issued by the Department of Communication and Publications (DCP), the reissuance auction will offer Tk 2,000 crore in nominal value of the 15-year Treasury Bond. This bond, first issued on March 27, 2024 with a coupon rate of 12.15%, carries an International Securities Identification Number (ISIN) of BD0939371151. It is set to mature on March 27, 2039. The press release highlighted that the auction will be price-based one, meaning bidders must submit their desired purchase price and quantity of the bond. The auction is open to all primary dealers of government securities, including banks and financial institutions, which have been appointed to participate in this process. Other banks and financial institutions can also submit bids through primary dealers on behalf of their individual or institutional investor clients. Read: Govt set to issue Tk 5000 crore bonds to clear power sector dues Participants are required to submit their bids electronically through the MI Module at the Bangladesh Bank between 10:00 am and 12:30 pm on the day of the auction. In special circumstances, manual bids may be submitted in sealed covers, subject to approval from the relevant department. The central bank has already issued detailed instructions regarding participation to all primary dealers, banks, and financial institutions through official correspondence. The reissuance of the Treasury Bond provides an opportunity for banks, financial institutions and investors to engage with long-term government securities, contributing to the country's financial market stability.

The Dhaka Stock Exchange (DSE), the country's main capital market, showed signs of recovery in early trading on Monday, following a five-day losing streak. In the first two hours of trading, share prices of 160 companies increased, while three key indices also posted gains. The DSE saw mixed movement, with 172 companies registering declines and 58 remaining unchanged. According to market sources, the DSEX, the main index of the DSE, rose by 9.79 points, reaching 5,170.52. The DSES Shariah index gained 2.42 points, moving up to 1,158. Meanwhile, the DS30, which tracks blue-chip stocks, climbed 2.48 points to 1,898.74. During this period, transactions worth approximately Tk 160.5 crore were recorded on the DSE.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Administrator, Md. Hafizur Rahman, has called on district chambers to take proactive measures to manage commodity prices and ensure a steady supply of daily necessities. Govt to procure 55,000 MT soybean oil for OMS During an online exchange meeting with district chamber leaders on Sunday, Rahman emphasized the importance of regular market monitoring to effectively control prices. He also urged the chambers to remain vigilant in overseeing local markets.  

The government will procure 55,000 litres of soybean oil for Open Market Sale (OMS) programme. Besides, it will import 50,000 metric tonnes of fertiliser to meet the local demands. Advisers Council Committee on Government Purchase (ACCGB) in a meeting, with Finance Adviser Dr Salehuddin Ahmed in the chair, approved a number proposals from different ministries in this regard. As per a proposal, placed by the Commerce Ministry, its subordinate body the Trading Corporation of Bangladesh (TCB) will purchase the 55,000 litres of soybean oil. Govt slashes VAT on import of edible oil City Edible Oil Limited, a local company, which was selected through an open tender process, will supply the edible oil at a total cost of about Tk 86.84 crore, with each litre at Tk 157.90. Three separate proposals of the Agriculture Ministry received the nod of the Advisers Council Committee for importing a total of 120,000 MT of fertilisers. Of these, the Bangladesh Agriculture Development Corporation (BADC) will import 40,000 MT of DAP fertiliser from Banyan International Trading Limited of China under state level contract at a cost of Tk 294.36 crore, with each MT at $613.25. BADC will import 40,000 MT of DAP fertiliser from OCP of Morocco under a state level contract at a cost of Tk 287.28 crore, with each MT at $598.50. Traders propose waiving duties on soybean, palm oil imports The BADC will import another lot of 40,000 MT of DAP fertiliser from Ma’aden of Saudi Arabia under a state level contract at a cost of Tk 290.88 crore, each MT at $606. The Industries Ministry’s proposal to import 30,000 MT of bulk granular urea fertiliser received the nod of the committee. Bangladesh Chemical Industries Corporation (BCIC) will import the bulk fertiliser from SABIC Agri-nutrients Company of Saudi Arabia at a cost of Tk 129.35 crore, with each MT at $359.33.

Bangladesh's foreign exchange reserves are gradually increasing and stabilising, says Bangladesh Bank (BB) Governor Dr Ahsan H Mansur. “The reserves, which had been depleting by USD 1.3 billion per month under the previous government, are now seeing a more positive trend,” Governor Mansur said in an interview with UNB on Sunday. “A significant amount has already been paid for fertilisers, electricity, and obligations to Adani-Chevron,” he said. Less than a month in, new governor returns stability to forex market In the past two months alone, the central bank has successfully reduced deferred payments from USD 2.5 billion to USD 700 million by paying off USD 1.8 billion in outstanding liabilities for energy and other essential services. As of October 8, Bangladesh's foreign exchange reserves stood at USD 19.82 billion as per BPM6 calculations, while the gross reserves reached USD 24.97 billion. He said that the central bank's primary goal is to eliminate the remaining debt within the next two months, aiming for a debt-free status by November-December. “Once achieved, liquidity in the market is expected to improve.” By settling these dues, the financial pressure on the economy is anticipated to ease, allowing economic activities to accelerate. The central bank is preparing to secure an additional USD 10 billion in loans from various international institutions to bolster the economy. Bangladesh forex reserves soar to $19.53bn boosted by remittance The Governor, however, expressed concern over the country’s growing foreign debt, which has now reached USD 103 billion, with repayment pressures steadily increasing. Despite this, he urged patience, suggesting that it will take at least a year to navigate through the current debt challenges successfully.

Six financially weak banks, grappling with liquidity crises, have reportedly received a total of Tk 1,640 crore in loans by three stronger banks. Sources at the Bangladesh Bank said that this step is aimed at alleviating the liquidity constraints faced by the country’s weaker banks and restoring some stability to their operations. According to the sources, the support came from Sonali Bank PLC, Mutual Trust Bank PLC, and Dutch-Bangla Bank PLC. The break-up of the amount they received: First Security Islami Bank Tk 375 crore, Social Islami Bank Tk 300 crore, Union Bank Tk 150 crore, Global Islami Bank Tk 95 crore, National Bank PLC Tk 320 crore and Exim Bank PLC Tk 400 crore. On September 25, Bangladesh Bank’s Governor Dr Ahsan H Mansur held a meeting with the Managing Directors and representatives of 10 strong banks to discuss the provision of loans against the central bank’s guarantee to aid the weaker banks. Read: ACC sues ex-chairman of Samabay Bank Mohiuddin Ahmed, wife These banks are Sonali Bank, BRAC Bank, Eastern Bank, City Bank, Shahjalal Islami Bank, Mutual Trust Bank, Pubali Bank, Dhaka Bank, Dutch-Bangla Bank and Bank Asia. The meeting decided that the stronger banks would be able to claim the loan amounts back from Bangladesh Bank within three days, if requested. The interest rates for these loans will be determined based on the prevailing market rates. Bangladesh Bank is hopeful that these measures will help restore confidence and ensure the stability of the banking sector.

The Association of Travel Agents of Bangladesh (Atab) has put forward a series of proposals aimed at combating corruption in the travel sector and ensuring the effective implementation of policies, guidelines, and laws to prevent money laundering within the industry. At  media briefing titled "Travel Agency Business and Current Scenario" on Saturday at a hotel in the capital Atab President Abdus Salam Aref highlighted  key concerns and urged  the the government to take the necessary measures. Coordination among agencies, structural reforms crucial for SME development: Speakers It proposed formulation of appropriate policies for conduct of Online Travel Agency (OTA) business, providing policies/instructions for group ticketing by stopping air ticket hoarding and syndicates, mandatory mentioning of agency name, contact phone number, ticket price on the ticket, blocking foreign websites/APIs so that they cannot run business illegally from Bangladesh and urgently stop money laundering. Besides, passengers of tickets sold from third countries (other than the country of departure and destination ie. India, Dubai, Singapore) need to be on-boarded at the Bangladesh airport that may prevent ticket sales and money laundering from third countries, it sad. They proposed quick action to stop giving incentives against collecting hundreds of crores of advance money in the name of selling air tickets. In order to prevent possible anarchy and loss of public interest in this regard and to prevent discrimination in trade, travel agencies cannot display, advertise, sell and market tickets at a price lower than the price of airlines, it said. Atab recommended action to stop unregistered fake agencies illegally conducting business, selling air tickets and travel related services. Capital market should be key source of long-term investment: BSEC Chairman It suggested monitoring so that online travel agencies (OTAs) do not issue login IDs to any unlicensed travel agent, tour operator or organization for doing business. Among others, Atab Secretary General Afsia Jannat Saleh, Vice President Mustafizur Rahman Hero, Joint Secretary General Atiqur Rahman, Deputy Secretary General Toaha Chowdhury, Finance Secretary Md. Safiq Uliah Nantu, were also present.