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.
Loan concentration in few groups places some banks at risk
Experts and economists on Sunday said that excessive financing by banks to some large business groups had created a risky situation in the country’s banking sector. Five to six scheduled banks might collapse if one of the large business groups becomes defaulted on loans, they said at the inaugural session of a two-day Annual Banking Conference organised by the Bangladesh Institute of Bank Management at its auditorium in the capital.
Bangladesh’s interest rate spread fall slightly in Oct
Overall interest rate spread in Bangladesh’s banking sector fell further slightly in October, as the banks decreased their interest rates on lending more than on deposits. The weighted average spread between lending and deposit rates, offered by the commercial banks, came down to 4.70 per cent in October 2016 from 4.76 per cent in the previous month, according to the central bank latest statistics. The spread was 4.80 per cent in August 2016.
Dhaka won’t share probe report with Manila
Finance Minister AMA Muhith ruled out Sunday any possibility of sharing the probe findings on the Bangladesh reserves heist with Manila. “I don’t know it until now. We won’t share it (with the Philippines). This is an internal report,” he said when his attention was drawn regarding Philippine government’s inquisitiveness about the inquiry results, which have been kept a secret so far.
India’s note crisis hurts BD remittance inflow
The abolition of India’s higher value bank notes leads to price hike in US dollar as well as its crisis in Bangladesh curb market as tourists opt for the bucks before visiting India. Besides, the abolition has also encouraged expatriates to send money home through illegal means. As a result the remittance inflow into Bangladesh through banking channel recorded its lowest within five years in November.
Bangladesh’s stocks fall on profit booking
Bangladesh’s stocks witnessed a mild correction on Sunday, snapping a three day’s winning spell, as risk-averse investors booked quick-profit on sector specific stocks. The market started with a higher note and the key index of the premier bourse rose around 19 points with first hour of trading, but could not sustain amid profit booking sale pressure, ultimately closed in the red.
Garment exports to Italy, Japan remain unhurt
Bangladesh’s garment shipments to Italy and Japan, the nationals of which were killed in a terrorist attack in Dhaka in July, remained unscathed in July-October — a development that will bring a heavy sigh of relief among exporters. In fact, apparel exports to the two nations increased during the period, according to data from the Export Promotion Bureau.
Public sector banks plastic-shy
The state-owned commercial banks (SoCBs) are seriously lagging behind in the area of plastic money, even after twenty years of introduction of card-based transactions in the country, the central bank’s recent statistics reveals. According to the latest Bangladesh Bank (BB) figures, transactions worth Tk 1.23 trillion had taken place in last four quarters (October 2015 to September 2016) through using debit and credit cards.
Net overseas investment at DSE falls by 27pc in Nov
The net overseas investment at the Dhaka Stock Exchange fell by 27 per cent or Tk 58 crore in November this year compared with that in the previous month mainly due to lower share purchasing by the foreign portfolio investors. According to the DSE statistics released on Sunday, the net foreign investment declined to Tk 155 crore in November against Tk 213 crore in October. Besides, participation of the overseas investors on the trading floor also declined as their turnover dropped by 9.94 per cent or Tk 73 crore in November from that in the previous month.