Dhaka, Bangladesh (BBN) - The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Tk 1,100cr bailout fund sought for Sonali, Janata, BASIC
The Financial Institutions Division has asked the Finance Division to disburse Tk 1,100 crore in bailout funds to three scam-hit state-owned commercial banks in a move that experts termed unethical amidst continuing loan scams. Officials said that the Financial Institutions Division recommended that the Finance Division should dole out Tk 400 crore each to Sonali and Janata banks and Tk 300 crore to BASIC Bank in a proposal to finance division on March 11 despite protests from experts who said that recapitalisation of the scam-hit banks should be stopped to protect wastage of public money.
Nine banks suffer BDT 194.67b capital shortfall
Bangladesh’s nine suffered an aggregate capital shortfall worth BDT 194.67 billion in 2017 mainly due to their higher classified loans. The nine banks–four state-owned commercial banks (SoCBs), three private commercial banks (PCBs) and two specialised banks (SBs)–were put on the list of capital shortfall, according to the central bank’s latest statistics. Two banks –one a SoCB and another fourth-generation PCB –hit the list of capital-deficient banks during the third quarter of 2017 when total capital shortfall was BDT 17.70 billion.
Open-ended MFs boom as bourses stay bearish
By a seeming contrast to a bearish run of Bangladesh's bourses, trading in open-ended mutual funds finds an exponential growth, with the number of investors in ICB tools showing a boom. The Investment Corporation of Bangladesh (ICB) sources said the number of investors in their funds had risen fast in recent years, coming to nearly 13,000 until June 30, 2016 and booming by nearly 270 per cent to 35,000 in a year to June 30, 2017.
Stock investors lost Tk 19,626cr in March
Dhaka Stock Exchange lost about 5 percent, or Tk 19,626 crore, in market capitalisation so far this month thanks to the banking sector's prolonged liquidity crisis. As of yesterday, market capitalisation of the country's premier bourse stood at Tk 388,220 crore.
Rice import leaps due to production shortfall
Rice imports jumped in the current fiscal due to what officials said huge production shortfall. Already 34.55 lakh tonnes of rice were imported by the government as well as merchants between July 2017 and March 21, according to the records of the Food Ministry. But only 1.3 lakh tonnes of rice was imported throughout fiscal 2016-17, shows Food Ministry records.
Listed ceramic makers’ profit leapt in 2017
Listed ceramic companies saw higher growth in profit last year owing to an increase in demand from the real estate sector and export markets. Five companies are listed on the Dhaka Stock Exchange. Of them, three posted more than 150 percent growth in profit in 2017 from a year earlier.
Move to tax businesses operating in tax havens
A move is underway for taxing the tycoons operating businesses in tax havens by incorporating international legal provisions into Bangladesh's income-tax law, sources said. At the core of the set of provisions lies Controlled Foreign Corporation (CFC) that enables the country of origin to levy taxes on business operations in another country.
Formation of clearing co hits snag as bourses fight for stakes
The formation process of a clearing and settlement company has run into trouble as Dhaka and Chittagong stock exchanges have sought 70 per cent stakes in total in the company, going beyond the ceiling of 65 per cent. Earlier, the Dhaka Stock Exchange sought the highest shareholding ceiling for a single bourse — 49 per cent — in the clearing and settlement company when the port city bourse did not mention any shareholding demand.
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