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.
Banks in tight race as rates slide
Lenders are locked in a stiff competition to bag clients with good track record, according to industry players. If a lender offers a borrower a loan at 9 percent interest rate, another bids to hook the client at 8.5 percent. Even then, the second lender may not get the client because a foreign bank will grab the customer giving a much lower rate. “We are facing stiff competition among too many banks. Consequently, the loan price has dropped significantly in recent months,” said Ali Reza Iftekhar, managing director of Eastern Bank.
With Tk 8,080cr surplus, govt squeezes T-bill, bond sales
Rates of interest on the government treasury bills and bonds decreased sharply in recent months due to a lower demand for borrowing through the instruments from the government which is now facing a surplus amount of Tk 8,080 crore in its account. Country’s scheduled banks rushed to invest their excess liquidity in the government tools amid slow credit demand due to a sluggish business situation in the country, but they received lower rates of interest from the T-bills and bonds.
Reserve money up twice the target
Reserve money grew by over 30 per cent to Tk 1.93 trillion in a year to June 30, widening the country’s monetary base in a way that may not bode well for the economy. Some economists make a prognosis that such disproportionate rise in the high-powered money may yield two ills: further swelling of the idle money in the economy and an increase in inflation.
Deemed accessory exports rise over 9% in FY 16
The contribution of garment accessories and packaging to apparel export rose by 9.28% to $6.12 billion in the last fiscal year. In the last fiscal year, deemed export earnings of garment accessories and packaging stood at $6.12 billion, which is 9.28% higher compared to $5.6 billion in the fiscal year 2014-15. The industry people hope that the figure will be more than double to $12 billion by 2018.
Bangladesh’s stocks edge lower for second day
Bangladesh’s stocks ended slightly lower on Sunday, extending the losing spell for the session in a row, as most of the investors followed cautious mood. The market opened with a mixed trend, and went down gradually as the session progressed amid marginal volatility, eventually ended slightly lower in benchmark index.
Energy set to be dearer with expensive LNG, LPG imports
The regulator moves to finalise guidelines for using the ‘energy security fund (ESF)’ now that energy usage is poised to be dearer with import of natural gas substitutes. Sources said the funds from the special allocation meant for energy security will help in the import of expensive LNG and LPG and building terminals.
BB heist report to be public by Sept 24
Finance Minister AMA Muhith yesterday said the probe report on the Bangladesh Bank’s reserve heist would be made public by September 24, though the minister made such promises several times in the past and failed to keep those. “I will go abroad on September 24. The report will be released before that,” Muhith told reporters at his secretariat. “I don’t want to be asked about this when I am abroad.”
Motor vehicles pact set to boost infra to BBIN
The Motor Vehicles Agreement (MVA) between Bangladesh, Bhutan, India and Nepal (BBIN) may boost for infrastructure development under the ADB (Asian Development Bank) finance in the participating nations. While majority of the finance is expected to reach Bangladesh that will see maximum increase in cargo movement; Nepal, Bhutan and India’s North-East should also witness infrastructure boost, reports the BusinessLine.