Banking

Central bank announces incentive for exporters

Posted by BankInfo on Tue, Jul 14 2015 10:40 am

Like last year over 150 goods and products of 14 categories will get cash incentive against their exports during the current 2015-16 financial year (FY16).
Bangladesh Bank (BB) on Monday in a circular announced the rate of the cash incentive ranged between 2.0 per cent and 20.0 per cent. Fish, frozen with over 40 per cent ice, will get the lowest 2.0 per cent while potato, halal meat and agro-products will get the highest 20.0 per cent cash incentive, reports BSS.
The handicraft items made out of elephant grass (hogla), paddy straw (khor) and sugarcane bark (akher chobra) will receive 15-20 per cent while light engineering will get 15.0 per cent cash incentive.
Exporters of leather products will be given 12.50 per cent when 10.0 per cent cash incentives will be entitled to exporters of diversified jute products and pet bottle and flex and the fish frozen with no more than 20.0 per cent ice.
Finished jute products will get 7.5 per cent when 5.0 per cent cash incentive will be offered against exports of jute yarn, ship and bone dust.
Small and medium garment factories would get 4.0 per cent and the apparel sector 4.0 per cent additional cash subsidy instead of bond and duty drawback facilities.
Exporters will get 3.0 per cent cash incentives for exporting new products and exploring new market outside USA, Canada and EU.
BB in the circular asked all authorised dealers (AD) of foreign exchange to offer the cash incentive on the products against net repatriation of the FOB (freight on board) prices from July 1, 2015 to June 30, 2016.

                                                                                                                            News:Daily Sun/14-Jul-2015

 

ADB tags 3 conditions for $120m loan negotiations

Posted by BankInfo on Tue, Jul 14 2015 10:33 am

Asian Development Bank (ADB) has asked the Bangladesh government to fulfill three conditions for getting loan for expansion of the existing Bangladesh-India Grid inter-connectivity between Bheramara and Baharampur having capacity to transmit another 500MW of electricity, concerned official said.
The existing inter-connectivity grid allows import of 500MW of electricity from India and the expansion of the line would allow purchase of another 500MW of power from the neighboring country.
The ADB conditions include gazette notification of tariff regulations, issuing bids for power purchase from India, and written confirmation from the power grid corporation of India for transmission of an additional 500MW of electricity to Bangladesh.
ADB Country Director Kazuhiko Higuchi in a letter to the Economic Relations Division senior secretary Mohammed Mesbahuddin on July 6, 2015 said the above project of $120 million awaits ADB approval during the third quarter of 2015.
The project is at the advanced stage of preparation, and its DPP was approved on March 31, land acquisition was completed, technical consultant is already in place, and bidding process is underway, he said. “However, none of the three conditions for loan negotiations have been implemented so far,” ADB country director said expressing dissatisfaction.
Commenting about the draft BERC (Bangladesh Energy Regulatory Commission) tariff regulation, concerned official said the BERC has already made a pre-publication for comments that is already over. The BERC plans to publish the tariff regulation in mid of August, sources said. Besides, Bangladesh Power Development Board (BPDB) has already submitted bidding documents to Power Division for purchasing additional 500MW of electricity. The BPDB targeted to import power on short-term and mid-term basis from Indian open market for three years between November 1, 2017 and January 31, 2019, the letter read. Besides, BPDB has a target to purchase long-term power between February 1, 2019 and October 31, 2032, it said.
Bangladesh and India have already decided to exchange another 500MW of electricity from Indian open market.
The government now imports 500MW of electricity from India, but only 460MW-470MW is added to the national grid. Rest of the electricity is eaten up due to synchronisation in the inter-state grid, concerned officials said.
The Power Grid Company of Bangladesh (PGCB) is now conducting feasibility study to enhance 500MW Indo-Bangla grid inter-connectivity at Bheramara-Baharampur grid line under Asian Development Bank (ADB) funding.
The installation of grid interconnection would be completed by October, 2017.
As per regulations 2009 of Central Energy Regulatory Commission of India (CERCI), it must be required to apply before three years for long term power access, the BPDB secretary informed the power division.

News: Daily Sun/14-Jul-2015

12 banks to give new notes until July 16

Posted by BankInfo on Tue, Jul 14 2015 09:55 am

People can swap their old banknotes for new notes ahead of the EId festival next week under a special initiative of Bangladesh Bank.

Notes and coins of all denominations from Tk 1 to Tk 1,000 can be exchanged at the counters of the central bank's various offices and 12 branches of scheduled banks in Dhaka.

The initiative will continue till July 16, Bangladesh Bank said in a statement.

Eight of the branches are: Janata Bank's New Market branch, Pubali Bank's Sadarghat branch, Prime Bank's Mouchak branch, One Bank's Basabo branch, Islami Bank's Shyamoli branch, Dutch-Bangla Bank's Dakshinkhan branch, Mercantile Bank's Banani branch and Bank Asia's Dhanmondi branch. 

News:The Daily Star/14-Jul-2015

BB rewrites guideline for mobile banking

Posted by BankInfo on Tue, Jul 14 2015 09:33 am

Banks will have to form a separate subsidiary if they want to provide mobile financial services (MFS) as per a proposal by the central bank.

At present, banks run MFS as a wing of the company, but the proposed guideline stipulates that they set up a separate platform with a minimum paid-up capital of Tk 100 crore.

It said the MFS platforms will be sponsored and led only by commercial banks, according to the Regulatory Guidelines for Mobile Financial Services in Bangladesh.

The proposal also offers opportunities to mobile phone operators to be an active part in the system.

The scheduled commercial bank-led MFS platforms may have both banks and non-bank entities, including mobile network operators, as equity holders.

In that case, banks will hold the majority beneficial ownership in total equity.

The beneficial ownership of telecom operators in an MFS platform should not exceed 30 percent of its total equity.

Mobile operators have long sought to be part of the growing MFS but the banks were always opposed to the idea.

Although the mobile operators have not been given the full permission to run the MFS, a chief executive officer of a mobile phone operator welcomed the proposal.

But bankers expressed concerns.

“It will not be wise to force us to form a subsidiary. It should be kept open,” said Abul Kashem Md Shirin, deputy managing director of Dutch-Bangla Bank that runs one of the largest mobile financial services. 

                                                                                                                                                                                                                  News:The Daily Star/14-Jul-2015

Hefzur made Krishi Bank GM

Posted by BankInfo on Mon, Jul 13 2015 02:20 pm

Business Desk :Md Hefzur Rahman joined Bangladesh Krishi Bank recently as General Manager. Prior, he was serving as Principal of Staff College in the same bank. He started his banking career as Class One Officer in Bangladesh Krishi Bank (BKB) in 1982. He worked important positions like Manager,Regional Audit Officer, Chief Regional Manager, Divisional Audit Officer, AGM of Personnel and Loan Recovery Department of Head Office. He hails from a respectable Muslim family of Comilla district.

News:New Nation/13-Jul-2015
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