Bangladesh’s banks’ excess liquidity decreases slightly

Bangladesh Taka. BBN file photo

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.

New VAT measures to net in extra Tk 11,228cr
The National Board of Revenue has made a projection of generating around Tk 11,228 crore in value-added tax through budgetary measures in the coming fiscal year 2017-18 including implementation of the new VAT law. The revenue board, however, estimated that its collection through VAT would be Tk 8,435 crore less due to some of the proposed budgetary steps under the new VAT and Supplementary Duty Act-2012 which will come into force from July 1 this year.

Bangladesh’s excess liquidity falls significantly
The overall excess liquidity with Bangladesh’s commercial banks decreased by 18.70 per cent or BDT 230 billion in April mainly due to higher credit growth particularly in the private sector recently. It came down to BDT 1.0 trillion in the last week of April from BDT 1.23 trillion as on December 31 last year, according to the central bank’s latest statistics.

Hall-Mark scam shoots Sonali Bank default loan up 50%
The default loan of state-owned Sonali Bank has risen over 50% following the Hall-Mark Group loan scam, said the bank Managing Director Obayed Ullah Al Masud. Masud said this while exchanging views with the reporters at his office on Wednesday. The deputy managing directors and general managers of the bank were also present on the occasion.

Stop injecting funds into state banks
Half a million people would have been brought out of poverty had the government allocated Tk 2,000 crore to the poor instead of doling out money to the state banks, analysts said yesterday. “There is no logic in subsidising the state’s fragile banks or industries in this way. It’s a reward for their inefficiency,” Abdul Bayes, director of Brac Research and Evaluation Division, said at a discussion.

Profit booking pulls Bangladesh’s stocks down
Bangladesh’s stocks broke a six-day winning streak on Wednesday to return to the red, as investors opted for quick-profit on sector specific stocks. Market insiders said the market faced selling pressure as investors opted for profit booking in micro-cap and mini-cap securities.

Regulator working on internet price guideline
The telecom regulator is formulating a pricing guideline for internet services as data is not becoming cheaper at the user level despite significant cuts in bandwidth prices. The government reduced the internet bandwidth price to as low as Tk 625 a megabyte last year, which was Tk 72,000 eight years back.

Mobile cos lament addl duties on smartphone, 4G equipment
Increased taxes on import of smartphone and capital machineries for 4G services would hamper mobile phone operators’ initiative to increase penetration, said Association of mobile phone operators. The association came with the statement at a post budget reaction on Wednesday at a city hotel protesting government’s move to increase taxes on import of 3G and 4G enabled smartphones and import of 4G equipments against the backdrop of government’s move to roll out 4G services soon.

Size of block allocation rises by 31.67%
The government has proposed to increase the size of block allocation by 31.67% in the budget for Fiscal Year 2017-18 compared to the outgoing fiscal year. The proposed block allocation in the next fiscal budget is Tk4,327 crore while it is Tk3,286 crore in the current fiscal year, according to the latest budget document.