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.
2016 GOOD, 2017 to be BETTER
Bangladesh ends 2016 with a record-breaking economic growth, thanks to political stability throughout the year. Only a year ago, one could hardly think that 7.11 percent economic growth would be possible in fiscal 2015-16 after political unrest between 2013 and mid-2015. But political stability in 2016 has not only yielded high economic growth but has also given entrepreneurs confidence to do better in the days to come.
PCBs’ operating profits slow
Unaudited operating profits of the country’s private commercial banks (PCBs) registered a slow growth in the just-concluded year 2016, due mainly to the swelling of classified loans, bankers said. Most of the banks, excepting a few, maintained their operating-profits growth despite a downturn in interest-rate spread, according to them. The weighted average spread between lending and deposit rates offered by the commercial banks came down to 4.70 per cent in October from 4.84 per cent in January 2016.
NRBC Bank under BB scanner
The central bank of Bangladesh has appointed an observer to the NRB Commercial Bank Limited (NRBC Bank) for improving financial health through strengthening monitoring and supervision of the bank. Masud Biswas, general manager of the Foreign Exchange Policy Department of Bangladesh Bank (BB), has been appointed as the observer to closely monitor the overall activities of the new private commercial bank (PCB).
Junk stock prices skyrocket in 2016
The prices of low-profile stocks at the Dhaka bourse surged in 2016 as 10 ‘Z’ category scrips were among the 40 companies which witnessed share price increase ranging from 50 per cent to 586 per cent in the year. Though not under the junk category, most of the remaining 30 companies are considered fundamentally poor. Stock market experts said investors’ rumour-based investments and imprudence in making investment decisions were major reasons for the abnormal hike in junk companies’ share prices.
Apparel growth hinges on reining in labour unrest
Mohammadi Group, a leading garment exporter, will address three important factors in 2017 to maintain its 10 percent year-on-year business growth. The company will expand its operations, complete remediation and produce more value-added items. Expansion will ensure higher productivity, remediation will brighten image of the company and value-added products will give the manufacturer a competitive edge, said Rubana Huq, managing director of the group. These three factors are important for almost all the 4,000 active garment factories that employ more than 4.4 million workers.
Bangladesh’s stocks witness 8.8% return in 2016
The prime index of the Dhaka Stock Exchange (DSE) posted 8.8 per cent return in 2016 over the previous year as investors’ confidence is getting back reflected in the upward movement of the price indices. “The year 2016 ended with hope and aspiration as the market closed in green zone,” said IDLC Investments, a merchant bank, in its yearly stock market review. “A consistent rally of last two months assisted the DSE prime index to stay above 5,000 points level, while yielding a total of 8.8 percent return for this year,” said the merchant bank.
Slump in remittance major challenge in 2017
Sharp decline in remittance inflow poses a ‘major challenge’ for the country’s economy in the New Year amid chronic slow private investment, growing bad loans and capital flights. Economists and experts said that the country’s economic progress in the past year was not bad as the export grew 6.9 per cent to $31.83 billion in the first 11 months of 2016 while tax collection by national board of revenue grew 17.35 per cent to Tk 35,264 crore in third quarter of the calendar year.
Bangladesh’s private sector credit growth falls further in Nov
Bangladesh’s private sector credit growth fell further in November over that of the previous month mainly due to lower demand for fresh credits. The growth in credit flow to private sector came down to 15.01 per cent in November 2016 on a year-on-year basis from 15.20 per cent a month before. The private sector credit growth was 15.34 per cent in September 2016, according to the central bank latest statistics.