Working in a RMG factory of Bangladesh 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.
Industrial Sector: Job growth falls further
Employment growth in industrial sector slowed further in fiscal year 2016-17 for the second year in a row, in a sharp U-turn from its previous growth record, according to the Labour Force Survey released by the Bangladesh Bureau of Statistics last week. Sluggish private investment, rise of capital intensive sector and adoption of advanced technologies are three key reasons behind this, experts and analysts said.
Builders scale down work, spending on Padma Bridge
The project-execution agency seeks a pared-down Tk 43.95-billion fund from the government in the upcoming budget for the Padma Multipurpose Bridge as construction work decelerated, sources said. At the present rate of going -- reportedly slowed by riverbed adversities -- the builders could miss the December 2018 construction deadline, they presumed.
Bangladesh’s PCBs may get 40% deposit of Govt. fund
Bangladesh’s private commercial banks (PCBs) are likely to eligible for receiving more government fund as deposit to meet their growing demand for liquidity. The government functionaries are now securitizing the possibility of relaxation of the policy allowing the state-owned enterprises (SoEs) to deposit more funds with the PCBs to help mitigate the ongoing liquidity crunch.
Govt to open prepaid power meters to market
The government is set to leave prepaid electricity meters to the open market allowing consumers to choose and buy the meters from the market. Currently, power distribution utilities supply prepaid electricity meters to consumers in different distribution areas across the country and do not follow any uniform rent system for the meters, said officials.
Private banks' profits slide on piling bad loans
Private banks' net profits slid for the first time in four years in 2017, dragged down by their ballooning non-performing loans. In 2017, private banks, most of which are listed on the stockmarket, counted Tk 7,782 crore in net profit in contrast to Tk 7,806 crore a year earlier.
SoCBs charge 10.50% on term-deposit to other banks
The state-owned commercial banks (SoCBs) are now charging maximum 10:50 per cent interest rate on term-deposit for other banks particularly private ones. Most of the SoCBs have enjoyed a comfortable satiation on liquidity as the government agencies prefer depositing their funds with the public banks after the Farmers Bank incident.
Dhaka, Jamuna banks allowed to float bonds worth Tk 1,000cr
The Bangladesh Securities and Exchange Commission on Wednesday allowed two banks — Dhaka Bank and Jamuna Bank — to float subordinated bonds worth Tk 1,000 crore in total.The capital market regulator gave the approval in a commission meeting presided over by its chairman M Khairul Hossain. As per the BSEC approval, Dhaka Bank will float non-convertible floating rate subordinated bonds worth Tk 500 crore and Jamuna Bank will issue non-convertible coupon bearing subordinated bond worth Tk 500 crore.
Taxpayer’s money for bailing out banks lines pockets instead
A sizeable portion of the taxpayer’s money – Tk2,000 crore to be precise – is earmarked in the budget for recapitalization of banks. The budgets for the 2016-2017 and 2017-2018 fiscal years has seen Finance Minister AMA Muhith ensure Tk2,000 crore is always set apart to help cover the massive deficit of various banks. The trend is expected to continue in the upcoming budget as well.
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