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.
Govt body advises BB to assess capital account convertibility option
A government committee has advised Bangladesh Bank to review whether Bangladesh could adopt full capital account convertibility (CAC) allowing local businesses to make overseas investment. If the system is adopted fully, any business entity of the country would be able to convert its capital (takas) into foreign currencies and make investment abroad without taking prior approval from the authorities concerned. In Bangladesh, capital accounts are not convertible in line with the foreign exchange regulation act, but some foreign investment from the exporter retention quota is considered on a case-by-case basis.
Four strategies to meet capital shortfall in banks
The government has decided to take initiative to meet the capital shortfall of Tk15,000 crore in the state-run banks. Bank and Financial Institutions Division has come up with four different strategies to address the shortfall. The Division has sent a summary of the strategies to Finance Minister AMA Muhith recently. Bank and Financial Institutions Division said the capital shortfall can be met providing capital or issuing shares in the stock market. The capital shortfall can also be addressed through cash payment from budget allocation.
Islami Bank breaks rules in approving loans, BB finds
The newly-formed board of Islami Bank Bangladesh has approved loans to clients without following proper rules, according to the central bank. In some instances, the board has not paid heed to objections raised by the Bangladesh Bank observer to the bank. BB will enquire about the wrongdoings, if any, said sources at the central bank. Most of the loans under question were approved from the bank’s Chittagong region, according to BB findings.
BINs may be invalid from July
The existing business-identification numbers (BINs) may stand invalid for import, letters of credit (LC) opening, obtaining bank loans, land registration, supply of products, and participation in tender from July 01. Officials said the import of products using a current 11-digit BIN will be suspended from July 01, 2017 unless the businesses obtain fresh VAT-registration numbers beforehand.
BANGLADESH’S STOCKS SNAP 3-WEEK GAINING STREAK
Bangladesh’s stocks witnessed a mild correction last week that ended on Thursday, breaking a three-week gaining streak, as cautious investors booked quick-profit on sector specific stocks. Brokers said investors sold shares to bag profit on stocks that saw significant rise in recent upsurge amid latest gas price hike and transport workers strike. The week featured five trading sessions as usual. Of them, first session managed to close higher while last four closed lower.
State banks’ rescheduled loans turn bad again
State banks’ large loans that were rescheduled nearly two years ago to support the borrowers have turned bad again. Bangladesh Bank data shows default loans increased by Tk 10,801 crore last year to take the total figure to Tk 62,172 crore as of December 31, 2016. Of the new default loans, eight state banks alone accounted for 74 percent or Tk 7,997 crore. The banks are — Sonali, Janata, Agrani, Rupali, BASIC, Bangladesh Development Bank, Krishi Bank, and Rajshahi Krishi Unnayan Bank.
Zhenhua’s bid prompts BD govt to make its own move
The government still sticks to its plan to acquire Chevron’s Bangladesh stakes and appoint Scotland-based consultancy firm Wood Mackenzie soon to assess the US firm’s asset value, State Minister for Ministry of Power, Energy and Mineral Resources Nasrul Hamid said. “We want to see first whether acquiring Chevron’s stakes in Bangladesh would be profitable or not,” he said.
Bangladesh: Denim makers advised to improve products quality
Denimsandjeans Bangladesh Expo ended in the capital on Thursday advising denim makers to improve the quality of their products using modern technologies along with latest trends to attract global buyers. Exhibitors as well as buyers expressed their satisfactions over the expo, saying that it will help creating a platform for denim stakeholders and will make Bangladesh as a one stop sourcing platform for denim industry. Bangladesh has become a major hub for sourcing trendy denim products for international retailers for its competitive pricing, they observed.