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.
Interest rate spread on decline
Interest rate spread in the country’s banking system improved slightly in May as banks slashed interest rates on deposits more than on lending. The spread defined as the gap between lending and deposit rates rose to 2.94 per cent in May 2020 from 2.92 per cent in the previous month, according to the Bangladesh Bank or BB statistics. The spread was 4.07 per cent in March.
Floods damage crops of Tk 350cr so far
Floods have already damaged crops worth nearly Tk 350 crore and are going to pile up further losses on tens of thousands of farmers, according to an official estimate. Growers of aus and aman rice crops, jute and summer vegetables in 14 districts suffered the biggest losses as the floods submerged nearly 42,000 hectares of the cropland, said Alhaz Uddin Ahmed, director of the field services wing at the Department of Agricultural Extension (DAE).
Defaulted industrial loans rise by Tk 704cr in Jan-Mar
The amount of defaulted loans in the country’s industrial sector increased by Tk 703.83 crore in January-March quarter to reach Tk 45,831.12 crore as of March 30 this year even though the government relaxed policy to lower the figure on paper. Experts said that the amount would rise further in the coming months not only for the coronavirus-induced economic shocks but also for the absence of good governance in the banking sector that had been becoming more vulnerable gradually.
Local brands go for huge discounts to clear stocks
Infinity, one of the country’s leading lifestyle brands, is now offering huge discounts on various products. The brand is giving 50 percent off on old outfits and up to 20 percent on new ones. The company is also selling shoes, jewellery, cosmetics and other fashion products at different discounted rates.
Stocks extend losses amid ongoing virus scare
Stocks extended the losing streak for the fifth straight session on Sunday as the risk-averse investors continued their sell-offs amid ongoing virus fears and floor price mechanism. The market started with sell pressure as investors adopted exit mode amid uncertainty over the economic recovery and the downturn continued until end of the session.
RMG exports fetch $1.57b in 18 days as buyers reviving orders
The country’s readymade garment exports in the first 18 days of July stood at $1.57 billion as the global buyers started reviving orders in a big way. Exporters said that although the export earnings were still lower than the amount earned in the same period of last year, the shipment of RMG products worth $1.57 billion in the 18 days was a positive sign for the country as the RMG sector had lost earnings worth $4.33 billion in the March-June period of this year due to the global coronavirus pandemic.
Rawhide of sacrificial animals: Four SoCBs to lend Tk585cr
State-owned Commercial Banks (SoCBs) have sought refinance fund from the government for lending to rawhide traders before the Eid-ul Azha. The four SoCBs have decided to lend Tk586 crore on procuring rawhide of sacrificial animals. Top officials at the Sonali, Agrani, Rupali and Janata Bank at a meeting with the finance ministry past week sought 50% of their total disbursed loans as a refinance capital.
Eastern Bank’s profits rise on higher loan recovery, low NPL
Eastern Bank’s profits grew at a handsome rate in 2019 thanks to a higher recovery from written-off and classified loans, new client acquisition and deeper penetration both in retail and SME segments despite it being a challenging year for almost every financial institution. The profit after tax of the lender, which started operations in 1992, rose 30.1 per cent year-on-year to Tk 400 crore last year.