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.
Large, medium industrial base shrinks, shows survey
The number of the country’s large and medium manufacturing industrial establishments declined significantly in 2019 despite the fact that the curve of their contribution to the gross domestic product (GDP) headed upwards. The contribution of the manufacturing sector to the GDP is estimated at nearly 20 per cent in the fiscal year 2018-19, up from nearly 15.5 per cent in the fiscal year 2012, according to the Bangladesh Bureau of Statistics (BBS).
Bangladesh’s banks asset quality deteriorate: BB
Asset quality of the country’s banking sector deteriorated in 2018 as the gross non-performing loan (NPL) ratio showed an upward trend throughout the year, according to the Bangladesh Bank (BB). “Particularly, rising NPL ratio in the state-owned commercial banks (SoCBs) appeared to be a concern as these banks have dragged down overall asset quality of the banking sector,” the BB explained in its latest Financial Stability Report (FSR) 2018, released on Tuesday.
Govt to inject another Tk 1,500cr
State banks can keep on expecting to be coddled despite their continued financial irregularities and irresponsible lending practices, with the government looking to inject Tk 1,500 crore in the upcoming fiscal year to help the lenders meet their capital shortfall.
Top 3 borrowers’ default could lead bank sector to capital crisis
Country’s banking sector would suffer from an intense capital inadequacy if three largest borrowers in the sector fail to repay loans, according to the financial stability report of Bangladesh Bank. The central bank on Tuesday released the report which was prepared based on the country’s banking sector’s condition in the year of 2018.
Loan rescheduling rises by 21.39%
Loan rescheduling by banks rose by 21.39% to Tk23,210 crore in 2018, compared to the previous year, according to the Financial Stability Report-2018. The banks had rescheduled Tk19,120 crore defaulted loans in 2017.
Bangladesh’s stocks gain significantly after flatting mode
Bangladesh’s stocks ended higher on Tuesday, after remaining flat in the past four sessions, as investors showed their buying spree amid post-Eid expectation. Investors showed buying appetite on banking, telecommunication, food and pharmaceuticals sectors’ shares as pre-Eid sale pressure eased, according to market operators.
Japan may drop Matarbari power plant project
Japan is unlikely to sign a loan deal on the coal-fired Matarbari 1200MW thermal power plant project during the visit of Prime Minister Sheikh Hasina to that country. The possible negative impact of the use of coal on environment might have forced Japan to decide otherwise, officials said on Tuesday.
Widen limit for tax-free dividend earnings
Stock investors have urged the government to widen the tax exemption limit on dividend earnings by four times considering the sluggish market for a long time. They say they have been losing money for the last few years because of the bearish market. What is more, their dividend income is shaved off because of taxes.