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.
HI operating profits of a number of PCBs plunge
Operating profits of a number of private commercial banks (PCBs) dropped significantly in the first half of the current calendar year. The decline in profit is largely attributed to the fixation of single-digit interest rate from April 1 last. The Covid-19 pandemic has also partly pushed down the private lenders’ bottom line, according to senior bankers. Of 41 PCBs, operating profits of 11 fell, while only two fourth generation banks managed to turn profit, according to provisional data of January- June period. The data of the rest banks were not immediately available.
Pandemic to cause an economic whiplash: BB
All major economic segments of the country will face deep trouble this year due to the ongoing economic fallout brought on by the coronavirus pandemic, according to a central bank report. Although the government had set a GDP growth target of 8.20 per cent for this fiscal year citing a V-shaped recovery, the central bank’s projections have given an indication the economy may face deep trouble in the days ahead.
RMG exports dip by $6.3b in FY20 on pandemic
The country’s readymade garment exports in the just concluded financial year 2019-20 declined by 18.45 per cent, or $6.3 billion, to $27.83 billion from $34.13 billion in FY 2018-19 as the global outbreak of coronavirus disrupted business across the world. Although the export earnings witnessed a negative growth in June, the last month of FY20, the export performance in the month was slightly better compared with that in the previous three months.
When banks need cash most they give cash dividend to avoid tax
At a time when banks need to hold more cash to strengthen their capital bases, most have declared cash dividends for last year to avoid additional taxes on stock dividends imposed in the FY20 budget. Although the government had imposed the additional taxes on stock dividends for the sake of capital market investors, the Covid-19 outbreak has rendered it counterproductive for both banks and investors amid rising concerns of default loans.
DSEX tumbles 26pc in outgoing fiscal year
The stock market passed yet another gloomy year as the core index of the Dhaka Stock Exchange (DSE) eroded more than 26 per cent in the outgoing Financial Year (FY) 2019-20. After the stock market crash in 2010-2011, the government came up with some instant market supportive measures. The market even after 10 years of a fragile journey failed to get a strong foothold, as investors were discouraged by one issue after another.
2020 has been very kind to Islami Bank
Every cloud has a silver lining, this famous adage rings true for Islami Bank as the ongoing coronavirus pandemic seems to have acted as a boon for the financial institution. The bank has been blessed with two milestones, recently. The first is that deposits with Islami Bank crossed the Tk 1 trillion or Tk 100,000 crore-mark on June 30, a significant feat for any bank in Bangladesh.
Businesses must display BIN on premises
It has been made mandatory for Value Added Tax-registered businesses and shops to display their business identification certificates on their premises from now on. Business and shop owners will face legal action for not exhibiting the BIN certificate, known as VAT registration certificate, according to the National Board of Revenue.
BB allows third party guarantee on export payment
The Bangladesh Bank has announced a policy framework aimed at easing the export process and keeping exporters free from risks of payment realisation. Under the policy, payment undertakers or insurers will arrange export payments in case of default by importers, thus mitigating the risks faced by exporters under the existing process for letters of credit (LCs).