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.
Proposals to hike power tariffs under scrutiny
Proposals to hike power tariffs submitted by the state-owned power distribution companies are now under scrutiny of the energy regulator, said State Minister for the Ministry of Power, Energy and Mineral Resources (MPEMR) Nasrul Hamid Tuesday. He said the electricity tariff could come to a ‘rational’ level within the next four to five years when the mid-term and long-term planned base load low-cost power plants come online.
Strike takes a toll on transport of commodities
The transport workers’ strike has started to affect the movement of goods across the country, said industry insiders yesterday. Business leaders in Dhaka have expressed their concern over the strike and said that the supply chain of export, import goods and essential commodities would be affected if the strike continues.
Aircraft crisis for new Biman routes
Biman Bangladesh Airlines failed to start flights on five new routes in the wake of aircraft shortage. Sources said in April last year, the national flag carrier planned to launch its operation on the new routes – Dhaka-Guangzhou, Dhaka-Colombo-Male, Dhaka-Delhi and Dhaka-Hong Kong after conducting a feasibility study. Biman had 14 aircraft in its fleet, but most of the time the leased two aircraft – Boeing 777 200 ERs – were grounded due to poor engine conditions.
Govt keeps ADP size unchanged in revision as PM intervenes
The National Economic Council on Tuesday approved the revised annual development programme keeping the total outlay unchanged at Tk 1,10,700 crore adopted in the original ADP for the current fiscal year. Though the foreign fund of the ADP was cut by Tk 7,000 crore in the revised ADP, the NEC in its meeting with its chairperson prime minister Sheikh Hasina in the chair, raised the allocation of the government fund by the same amount to keep the revised ADP unchanged.
BANGLADESH’S STOCKS FINISH LOWER FOR 2ND DAY
Bangladesh’s stocks finished slightly lower for the two consecutive sessions on Tuesday as cautious investors continued on profit booking mood. The market started with a positive note and the key index of the major bourse rose 13 points within first 40 minutes of trading, but the initial enthusiasm failed to sustain as the cautious investors were mostly on profit booking mood, ultimately ended 7.55 points lower.
Govt halts auctions of T-bills, bonds in March
The government has suspended the auctions of both treasury bills (T-bills) and bonds for the month of March to ensure its proper cash management, officials said. Bangladesh Bank (BB) communicated the government’s decision on suspension of auctions of T-bills and bonds to the commercial banks on Tuesday.
Banks’ capital swells
Overall capital of banks rose 7.81 percent in the last quarter of 2016, but 11 banks failed to maintain the capital in line with the new international standards. As per the Basel III framework, the state banks are in capital shortfall with Sonali, BASIC and Bangladesh Krishi Bank or BKB on top of the list. Eleven out of 57 banks failed to maintain minimum capital. Rupali, Janata, Agrani, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, Farmers Bank, AB Bank and ICB Islamic Bank are among them.
Govt under pressure to amend law
The government is under pressure to amend the Banking Companies Act 1981 to increase the number of family members in the board of directors of private commercial banks. Officials said that the maximum number of directors from a family might increase to four from the existing two following demand by Bangladesh Association of Banks. In 2013, the government amended the act restricting to maximum two the number of directors from a family the board of directors of a bank to check irregularities and indiscipline.