Saturday’s morning news highlights of Bangladesh

Last updated: March 14, 2015

Dhaka, Bangladesh (BBN)- The BBN (Bangladesh Business News) has prepared the morning news highlights compiling reports, published by different newspapers and news portals in Bangladesh.

Uneven disbursement of bank loans adds to regional disparity
Nearly 90 per cent of the loans and advances of scheduled banks are concentrated in Dhaka and Chittagong divisions, showing an unequal distribution of resources of banks. Around 70 per cent loans and advances of scheduled banks were invested in Dhaka division while about 20 per cent in Chittagong division during the period between July and September last year, according to the central bank's latest data. The rest of the loans and advances were disbursed in five other divisions such as Khulna, Rajshahi, Barisal, Sylhet and Rangpur during the period under review. During the period, the borrowers of Barisal and Sylhet divisions received the lowest volume of loans and advances among seven divisions, data shows.

Dull business continues to hit banks’ credit-deposit ratio

The credit- or advance-deposit ratio in the banking sector remained stuck at around 70 per cent in the recent months due to a dull business situation amid political unrest and uncertainty, said Bangladesh Bank officials. According to the latest BB data, the ADR in the banking sector stood at 70.79 per cent as of February 19, 2015 compared with that of 70.84 per cent as of January 30, 2014. The ADR was 74.01 per cent as of June 13, 2013, 76.59 per cent as of December 31, 2012 and 80.33 per cent as of June 7, 2012.

Fresh election only solution
Appearing before the media for the first time since January 19, BNP Chairperson Khaleda Zia yesterday said the ongoing anti-government movement will continue until it reaches a “logical conclusion”. Saying that she is aware of people's sufferings due to blockade and hartal, Khaleda urged the countrymen to put up with this for the time being in the interest of the nation. Reading out a statement to journalists at her Gulshan office, where she has been staying since January 3, the BNP chief reiterated that the present political crisis can be overcome only through an election under a non-party caretaker administration. She expressed the view also in her January 19 press conference.

Weekly stock review: Bearish spell continues as political unrest prolongs

The bearish spell continued in the Bangladesh’s stock market for the four straight weeks that ended on Thursday as investors were in selling spree amid the deepening political unrest in the country.  The week featured five trading sessions as usual. Of those, three sessions saw sharp decline while two sessions closed flat in green amid no improvement in the political front. Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE) dipped below the ‘psychological’ threshold of 4,600-mark and ended at 4,556.94 points, shedding 107.97 points or 2.31 percent.

Home budget goes up
The Ministry of Home Affairs needed a significant additional budgetary allocation as the cost of law enforcement amidst political troubles far outstripped its original budget size. Competent sources believe such non-development budget overrun this fiscal year is due to a substantial rise in the expenditure for maintaining law and order in the wake of nonstop blockade, coupled with hartal, continuing since January 05. A higher revision of budget for the same ministry also happened in the previous fiscal year, 2013-14, on the same grounds: turbulence stemming from government-opposition standoff over polls.     

Bangladesh Bank to impose cap on debit card charges
Bangladesh Bank (BB) is going to impose a cap on charges of debit card aiming to protect depositors’ interest, officials said. “We may fix the charges on debit cards in line with the banker’s opinions,” a BB senior official told BBN in Dhaka. He also said the issue will be discussed at the next bankers’ meeting, scheduled to be held on March 19. The central bank is likely to impose annual charge between BDT 300 and BDT 400 for all types of debit cards of the banks in a bid to popularise more the online-based transaction, another BB official said.

UK to join China-backed Asian development bank

Britain said it has sought to become a founding member of the Asian Infrastructure Investment Bank (AIIB), making it the first Western nation to embrace the China-backed institution, but the United States reacted frostily to the development. The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecommunications and other infrastructure. Analysts have said it could challenge the Western-dominated World Bank and Asian Development Bank.
Shasha Denims dominates week’s top turnover chart

The newly listed Shasha Denims Limited dominated the week’s top turnover chart on the Dhaka Stock Exchange (DSE) last week that ended on Thursday. A total of 20.23 million shares worth BDT 776.54 million were changed hands last week. Daily average turnover for the company was BDT 155.30 million. Shasha Denims which made debut on March 5, closed its share price at BDT 38.7 on Thursday, gaining 4.31 percent over the previous week.

BBN/SSR/AD-14Mar15-11:04 am (BST)

 

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