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.
NBFIs seek Tk 100b liquidity support
Top executives of the non-bank financial institutions (NBFIs) have sought Tk 100-billion emergency support from the central bank to meet liquidity requirements amid the COVID-19 pandemic. The support was sought in a meeting with the leaders of Bangladesh Leasing and Finance Companies Association (BLFCA) held at the Bangladesh Bank (BB) headquarters in Dhaka on Tuesday. BB governor Fazle Kabir chaired the meeting. A five-member high-level BLFCA team, led by its chairman Mominul Islam, took part in the meeting.
Beximco, Indian Oil team up to grab a slice of fast-growing LPG pie
At a time when most companies are grappling with the economic fallout of the global coronavirus pandemic, local giant Beximco Group, it seems, is doing rather well for itself. Its subsidiary Beximco LPG has teamed up with the Indian state-owned Indian Oil Corporation to profit off Bangladesh’s fast-growing liquefied petroleum gas market and supply the cooking gas to northeast India.
Loan default by top 3 borrowers to affect 20 banks
Defaults on loans by top three large borrowers of the banks would result in failure of 20 banks in maintaining minimum capital adequacy, according to the Bangladesh Bank’s financial stability assessment report released on Tuesday. ‘The significant amount of loans concentrated to a few borrowers and considerable level of NPLs to some banks and FIs could pose risk to the overall financial stability,’ the report said.
Bangladesh Bank sees pandemic cloud over banks
The Bangladesh Bank in a recent report has forecasted that default loans will increase further in the industry as an expected sluggish business condition due to the coronavirus outbreak could severely affect the debt-servicing capacity of the borrowers. It also sees the risk of crowding out of credit for the private sector due to high bank borrowing and banks’ preference to invest in risk-free government securities. The central bank made the observations in the “Financial Stability Report-2019”.
Stocks nudge higher in last session of FY20
Stocks ended marginally higher on Tuesday, the last session of the fiscal year (FY) 2019-20, as some investors showed their appetite on sector-wise stocks based on the latest quarterly earnings disclosures. DSEX, the key index of the Dhaka Stock Exchange, went up by 7.45 points or 0.18 per cent to settle at 3,989 during the three-hour trading session. The core index added 26 points in the past six consecutive sessions despite worsening pandemic situation in the country.
FY21 begins today with COVID-19 economic uncertainties
The financial year 2020-21 begins today with the coronavirus pandemic-induced unprecedented uncertainties on the economic front with rising poverty and unemployment, slowdown in production and consumption as well as risks to life and livelihood, experts and economists said on Tuesday.
Banks, bourses to remain closed on Wednesday
The country’s banks and capital market will remain closed today as the new financial year 2020-21 begins. Banks and financial institutions will not provide services for their clients due to the bank holiday as they will complete their book closures on the day.
BB came to small businesses’ rescue with a Tk 20,000cr package. But they are not seeing the money.
Last week, Jerome Powell, the Federal Reserve Chairman, waved the red flag on what is increasingly looking to be a legacy of the ongoing coronavirus pandemic: a wave of small business failures. “The pandemic is presenting acute risks to small businesses. If a small or medium-sized business becomes insolvent because the economy recovers too slowly, we lose more than just that business. These businesses are the heart of our economy and often embody the work of generations,” he told the Senate Banking Committee.