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’ deposit growth slows as interest rates go down further
Bank deposits had a slower growth than that of credits in 2016 as depositors these days feel discouraged from putting money in banks for lower interest rates, sources said. According to central bank statistics, the growth in deposits, on a year-on-year basis, rose to 13.13 per cent in the last calendar year from 13.08 per cent a year before while the credit growth increased to 15.32 per cent from 12.58per cent.
Private banks book hefty net profits
Private commercial banks saw 17.2 percent growth in net profit last year — a development that will bring cheer for stockmarket investors. In 2016, private banks, most of which are listed on the stockmarket, counted Tk 7,806 crore in net profit — eclipsing the overall banking sector’s performance. The overall banking sector’s profit grew 4.9 percent year-on-year to Tk 8,306 crore in 2016, according to the central bank’s provisional statistics.
Akij wants to take $20m out of B’desh to buy Malaysia co
Akij Jute Mills Ltd, a concern of Akij Group, has applied to Bangladesh Bank for taking $20 million out of Bangladesh to purchase a Malaysian company that produces items like fireboard and hardboard. The overseas investment proposal of Akij Jute Mills is the largest so far any company made to the central bank which follows strict rules so that foreign currency does not flow out of the country. BB officials said Akij Jute Mills applied to the central bank in August, 2016 through Standard Chartered Bank to get the approval to invest $20 million from its export retention quota (ERQ) by purchasing the company named Robin Resource Sdn Bhd located in Malaysia.
Two economic zone proposals go to Ecnec meeting on Tuesday
Proposals to acquire lands for two economic zones in Narayanganj and Chittagong will be placed at the Executive Committee of the National Economic Council meeting on Tuesday. Bangladesh Economic Zones Authority will place the proposals, which involve a total of Tk761.78 crore, for Ecnec approval. The economic zones include one for Japanese investors in Araihazar in Narayan and another in Mirsarai in Chittagong. Prime Minister Sheikh Hasina will preside over the Ecnec meeting.
Bangladesh’s banks asked to ensure proper use of loans
The central bank of Bangladesh has asked the commercial banks to ensure proper utilisation of the disbursed loans through regular monitoring. The banks have also been advised to follow the amended credit risk management guidelines in this regard, according to officials. The Bangladesh Bank (BB), the country’s central bank, issued an instruction in this connection on Monday, asking the chief executive officers and managing directors of all the scheduled banks to comply with the instructions as mentioned in the guidelines.
No new jobs in apparel
Job creation in the garments sector has slowed as factory owners are adopting modern machinery and hundreds of small and medium factories have shut down for failure to meet compliance standards. Total employment in the apparel sector has stagnated at 40 lakh between the years 2013 and 2016, said Rushidan I Rahman, executive chairperson of Centre for Development and Employment Research (CDER), yesterday. She was speaking at a discussion on Development and Employment: Selected Issues for Budget 2017-18, at Bangladesh Institute of Development Studies.
SoBs suffer Tk150b capital shortage
All of the seven state-owned banks (SoBs) are facing capital shortages worth a total of Tk 150 billion, landing them in problem in operating business at home and abroad, sources said. As of last December, Sonali Bank had a capital shortfall of Tk 26 billion, Janatal Bank Tk 6.64 billion, Agrani Bank Tk 2.0 billion, Rupali Bank Tk 10 billion, BASIC Bank Tk 22 billion, Bangladesh Krishi Bank Tk 74.85 billion and Rajshahi Krishi Unnayan Bank Tk 7.05 billion.
Profit booking pulls Bangladesh’s stocks down
Bangladesh’s stocks faced marginal correction on Monday, breaking a five-day winning spell, as risk-averse investor booked quick profit on sector specific large-cap issues. Brokers said stocks posted meager correction as cautious investors sold shares to bag some profit on quick gaining stocks, leading the market in the red territory. The market was in the positive territory for a brief period but investors put sale pressure to take modest profit as the session progressed, sending the market to the negative territory.