Wednesday’s morning business round up of Bangladesh

Last updated: March 25, 2015

Dhaka, Bangladesh (BBN) - The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

LC confirmation charges higher in Bangladesh

An importer in Bangladesh has to pay up to 4 percent of the import value as confirmation fees on letters of credit a year, which is far higher than in other South Asian countries. Businesses fear that the new spat of political instability that began on January 5 may further increase the fees and put extra pressures on them. They are already reeling from additional costs in transportation and supply chain management. “The charge for confirming the LCs remains between 3 and 4 percent annually, depending on the clients. But the prolonged unrest may push it up,” said the head of the treasury department of a private commercial bank.

BD to grow 6.1pc: ADB
Bangladesh's economy may grow by 6.1 per cent in the current fiscal year 2014-15, the Asian Development Bank (ADB) says in a scaled-down projection. The Manila-based international lending agency lowered its previous projection by three percentage points by citing blockade and violence as a major reason.  "Political blockades and violence in early 2015 will constrain growth and turn the current account into a small deficit," it said in Asian Development Outlook (ADO), published on Tuesday across the region.

No hartal on Wednesday, Thursday

The Bangladesh Nationalist Party-led alliance refrained from extending its 72-hour hartal that ended early Wednesday, on occasion of Independence Day on Thursday. Instead, the alliance called its activists and supporters in countrywide processions on Wednesday to press their demand for the return of their leaders and activists, including BNP joint secretary general Salah Uddin Ahmed, who has been ‘forcefully disappeared’. The 78th day of the non-stop blockade on the third day of the 72-hour hartal on Tuesday, meanwhile, saw little violence. A number of alliance activists were picked up around the country on violence-related charges.
Through a statement signed by BNP joint secretary general Barkat Ullah Bulu on Tuesday, the alliance announced the processions and continuation of the ongoing non-stop transport blockade.

Bangladesh’s stocks down for 2nd day

Bangladesh’s stocks ended lower for the second running sessions on Tuesday with key index of the prime bourse dipping below 4,500-mark again amid no improvement in the political front. DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down further by 13.15 points or 0.29 percent to close at 4,493.40 points. The two others indices also closed in the red. The DS30 index, comprising blue chips lost 4.34 points or 0.25 percent to close at 1,707.22 points. The DSE Shariah Index (DSES) shed 5.61 points or 0.51 percent to close at 1,090.75 points. The total turnover on the DSE came down to BDT 2.55 billion, which was 18.78 percent lower over the previous session’s value of BDT 3.14 billion.

Financial firms spent 12.3pc more on CSR in 2014
Financial institutions spent 12.3 percent more on corporate social responsibility engagements last year, compared to 2013, mainly due to a wider reach into various social causes.   CSR activities in the financial sector expanded from Tk 55.4 crore in 2009 to Tk 502 crore in 2014, Atiur Rahman, governor of Bangladesh Bank, said yesterday.   Banks and non-bank financial institutions spent their CSR funds to mainly empower the less well-off population segments, particularly in the areas of health, education, and emergency disaster relief, he added.

Lack of investment pushes up idle money in banks: Muhith
Finance Minister AMA Muhith said Tuesday it is not true that the idle money in the banking sector continues to grow for lack of investment demand in the country, reports UNB. He said the amount of the idle money in the country's banking sector stood at Tk 5.73 billion (573 crore) as of March 15 last.

 

NBR finds customs officials’ irregularities in imposing penalty for misdiclaration

The National Board of Revenue has instructed the customs houses for imposing proper and reasonable amount of preventive penalty to check duty evasion through misdeclaration in imports and exports, officials said. They said that the revenue board found that many customs officials imposed penalty at lower rates which failed to prevent repetition of such misdeclaration causing revenue losses of the government. Customs wing of the revenue board also found some irregularities in imposition of penalty for violation of customs matters including false declaration related to the rate of customs duty, under-invoicing, over-invoicing, quantity of products, nature of products, and origin of products in import-export activities.

India, China eye landmark trade, investment deal

India and China are likely to enter into a landmark agreement during Prime Minister Narendra Modi's visit to the neighbouring country to create a platform for cooperation between Indian states and Chinese provinces that will help promote bilateral trade and investments. "The two countries hope to agree to create a platform that will enhance cooperation between chief ministers of India and governors of Chinese provinces. This could be concluded during PM Modi's visit to China in May," China's Ambassador to India Le Yucheng told ET, reports The Economic Times. The first such framework between the two countries will be inspired by similar platforms that China has with the US and Russia.

BBN/SSR/AD-25Mar15-7:45 am (BST)

 

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