daily news flash, 20th july, 2017 - ebl securities€¦ · idlc finance sees 33pc growth in profit...

Daily News Flash, 20th July, 2017

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REMITTANCE FALLS FOR FRAUDULENCE ..................................................................................... 1

BANKERS FOR INCENTIVISING BENEFICIARIES THRU' BANKS ....................................................... 2

DSEX SINKS BELOW 5,800-MARK ON SELLING BINGE ON PRIME BOURSE ................................... 3

DOREEN POWER TOPS TRANSACTION CHART ............................................................................. 3

IDLC FINANCE SEES 33PC GROWTH IN PROFIT IN H1 .................................................................. 4

64PC LISTED MFS BELOW FACE VALUE ....................................................................................... 6

FIN MIN ASKS BB NOT TO GIVE CASH INCENTIVES TO REMITTERS .............................................. 7

BANKS ASKED TO SET UP FDI HELP DESK AT KEY BRANCHES ....................................................... 8

BANGLADESH BANK EYES REDUCING REMITTANCE FEES ............................................................ 8

SEVEN LOCAL FIRMS GET APPROVAL FOR OVERSEAS INVESTMENT ............................................ 9

OPERATORS ADD 1.74CR NEW USERS IN 9 MONTHS ................................................................ 10

BANKS CAN'T CUT REMITTANCE SENDING COSTS: BANKERS ..................................................... 10

TELCOS TO SPEND TK 22,600CR ON 4G SERVICES ..................................................................... 11

MANY GARMENT MAKERS LAUNCHED OWN BRANDS FOR LOCAL MARKET .............................. 12

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REMITTANCE FALLS FOR FRAUDULENCE Although over the last two years migration flow from Bangladesh is increasing significantly the remittance flow dropped due to fraudulence practices in migration process. The current migration system was affected by fraudulence practices largely in rural areas compared to urban areas and for that reason workers migrated to Gulf and Southwest Asian countries were not getting jobs as per their requirement, according to a report conducted by RAMRU, a non-government organisation, published in Dhaka on Wednesday. Founding chair of Refugee and Migration Movements Research Unit (RMMRU) Tasneem Siddiqui presented the report titled Role of Dalals in Migration Process in a seminar at the Nawab Nabab Ali Chowdhury Senate Bhaban of Dhaka University. The report urged the government to bring middlemen (engaged for collecting innocent worker for sending abroad) to book through the existing law as they (middlemen) engaged fraudulent practices in the migration process.

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Former Justice Nizamul Haque Nasim chaired the programme, while Benzir Ahmed, president of Bangladesh Association of International Recruiting Agencies (BAIRA), was present as the special guest. The research report was prepared through surveying nine villages of Paikora Union and 11 wards of Elenga municipality in Tangail district, which covered 5,407 households. The report said of the total aspirant migrant households 51 per cent experienced fraudulence. Among them, 19 per cent failed to go aboard after paying a section or full amount and 32 per cent experienced fraudulence in the destination, according to BSS Source: http://www.thefinancialexpress-bd.com/2017/07/19/77430/Remittance-falls-for-fraudulence:-Survey-report BANKERS FOR INCENTIVISING BENEFICIARIES THRU' BANKS Bankers recommended Wednesday providing incentives through banks to the beneficiaries of remittance as a mechanism to attract non-resident Bangladeshis (NRBs) in sending money home through formal channel. The bankers put forward the suggestion at a meeting at Bangladesh Bank headquarters in the capital that runs counter to a finance ministry proposal in reducing the remittance cost -- providing incentives to the exchange houses at the senders' end, if necessary. The ministry had also requested the central bank to examine other ways of reducing the cost and attract the remitters to the formal channel. As a follow up, the BB convened the meeting with top 20 remittance- receiving banks operating in the country. Senior executives of the banks, who deal mainly with the inward remittance processing, and senior BB officials took part at the meeting, with BB executive director Ahmed Jamal in the chair. The bank executives also urged the central bank to take effective measures for stopping 'digital hundi' allegedly being conducted by the mobile financial services (MFS). They also suggested issuing a notification, asking the MFS providers to make sure that the remitters submitted their respective NIDs (National Identity Cards). It should be made mandatory. A BB senior official said the bankers explained their positions and alleged that the overseas exchange houses impose commission on the money sent by the NRBs. "We do not impose any charge on the inward remittance," a senior executive of a leading private commercial bank (PCB) told the FE after the meeting. Majority of the bankers recommended the BB for taking measures to incentivise the remittance receivers instead of the senders, he said. It would help boost remittance inflow. "We'll communicate the recommendations with the finance ministry," an official of the BB said. The meeting discussed issues like the latest trend in inward remittance and the exchange rate of the local currency against the US dollar, particularly in cases of inward remittance. Besides, leakage in channelling small-sized remittances through non-bank channels came up for discussion, the private banker said. Another meeting with the top remittance-receiving banks is scheduled to be held on Monday next, mainly to discuss about making it mandatory to open a bank account by the workers before their going abroad. It might make them aware that they would have to send money home through the account, said a banker. The government's latest move came against the backdrop of falling trend in inward remittance in the recent months, following the slower development activities in the Middle-Eastern countries due to lower price of fuel oil in the global market.

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A rising trend in sending hard-earned money by expatriate Bangladeshis through informal channels has also pushed down the flow of inward remittances, according to the bankers. The inflow of remittance dropped by 14.48 per cent to US$12.77 billion in the outgoing fiscal year (FY) 2016-17 from $14.93 billion a year before, BB data showed. The central bank as well as the government is now working on revamping the flow of inward remittances in the current fiscal year. As part of the move, the central bank had asked the banks for taking measures to attract NRBs through improving the quality of remittance services. The banks have also been instructed to open 'help desk' at each branch concerned for ensuring better remittance services. Source: http://print.thefinancialexpress-bd.com/2017/07/20/178373 DSEX SINKS BELOW 5,800-MARK ON SELLING BINGE ON PRIME BOURSE Stocks extended losing streak for the three consecutive sessions Wednesday with core index of the prime bourse dipping below the 5,800-mark as investors booked profit on large-cap issues. Dealers said the market witnessed another downbeat session as most of the investors continued to prefer booking profits on stocks that saw substantial gains in the past few trading sessions. "Many investors also followed cautious stance ahead of Monetary Policy Statement (MPS) for the first half of the current fiscal year," said an analyst at a leading brokerage firm. Bangladesh Bank (BB) is set to announce the MPS for July-December period of 2017 on July 26, keeping special focus on investment, small and medium enterprise (SME), inflation and private sector credit growth. The market started with a strong note in the early session, gaining 20 points within 30 minutes of trading. Since then, key index of the premier bourse, fell sharply till the end of the session as enthusiasm subsided. Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 43.66 points or 0.75 per cent to settle at 5,776. DSEX eroded nearly 70 points in the past three consecutive sessions from its historical high of 5,844 points. "The market declined with high volume as 223 of the traded issues declined as against in gain in only 86 issues," commented IDLC Investment, a merchant bank, in its regular market analysis. The merchant bank noted that engineering led in turnover, contributing 14.3 per cent of total turnover, closely followed by fuel & power with 14 per cent and bank 13 per cent. "Smaller cap classes suffered, with micro caps being the worst performer," said the merchant bank. The two other indices also closed lower. The DS30 index, comprising blue chips fell 13 points or 0.60 per cent to finish at 2,121. The DSE Shariah Index (DSES) lost 7.30 points or 0.55 per cent to close at 1,315. The port city bourse, the Chittagong Stock Exchange (CSE), also ended lower with its Selective Categories Index - CSCX - losing more than 78 points to settle at 10,838. Losers beat gainers as 184 issues closed lower, 63 closed higher and 17 remained unchanged on the CSE. The port city bourse traded 22.23 million shares and mutual fund units' worth Tk 711 million in turnover. Source: http://print.thefinancialexpress-bd.com/2017/07/20/178322 DOREEN POWER TOPS TRANSACTION CHART Doreen Power Generations & Systems Wednesday topped the premier bourse's transaction chart while top ten traded companies captured nearly 29 per cent of the day's total turnover.

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The total transaction at the Dhaka Stock Exchange (DSE) stood at Tk 10.69 billion on the day, which was 11 per cent higher than the previous day's value of Tk 9.62 billion. Doreen Power, IFAD Autos, RAK Ceramics, Shahjibazar Power, Unique Hotel, Confidence Cement, Mercantile Bank, Keya Cosmetics, Grameenphone and LankaBangla Finance were the most-active shares in terms of value on the DSE. Of them, share price of six companies advanced up to 3.92 per cent, four faced correction up to 3.55 per cent over the previous session. According to statistics available with the DSE, some 2.93 million Doreen Power shares were traded on the day, generating a turnover of nearly Tk 441 million, which was 4.12 per cent of the day's total transaction. The power generation company's share price hovered between Tk 148.30 and Tk 1152.80 each, before closing at Tk 149.10 on the day, registering a decline of 1.45 per cent over the previous day. Doreen Power, which raised Tk 580 million through initial public offering (IPO) by floating 20 million ordinary shares, was listed on the stock exchanges in April, 2016 The company's paid-up capital is Tk 960 million and authorised capital is Tk 2.0 billion, while the total number of securities is 96 million. The sponsor-directors own 75 per cent stake in the company, while institutional investors own 13.88 per cent, and general public 11.12 per cent as on June 30, 2017, the DSE data shows. IFAD Autos followed next, with shares of Tk 437 million changing hands, capturing 4.08 per cent of the day's total turnover value. The company's share closed at Tk 151.30, advancing 2.30 per cent. RAK Ceramics emerged as third with shares of Tk 382 million changing hands. It was 3.57 per cent of the total turnover value. The company's share price rose 3.92 per cent to close at Tk 60.90 each. Shahjibazar Power featured a turnover of Tk 334 million which was 3.12 per cent of the day's total transaction. The power generation company's share price closed at Tk 152.30, advancing 0.52 per cent. Unique Hotel notched the fifth spot, with shares of Tk 303 million changing hands, contributing 2.83 per cent of the day's total turnover value. The company's share price closed at Tk 60.30, advancing 2.80 per cent. The turnover of Confidence Cement was Tk 278 million, capturing 2.60 per cent of the day's total value. The company's share price closed at Tk 159.90, losing 1.48 per cent. Source: http://print.thefinancialexpress-bd.com/2017/07/20/178324 IDLC FINANCE SEES 33PC GROWTH IN PROFIT IN H1 IDLC Finance Ltd vows to change the present scenario of country's stock market through offering diversified and innovative products for the investors. "With an enduring presence in the country's financial market for a long 32 years, we always follow the blue-ocean business strategy, rather than the red-ocean strategy and innovation is part of our DNA," Arif Khan, CEO & Managing Director of IDLC Finance Limited told FE in an interview recently. IDLC Finance, the largest financial institution in the country recently launched its first open end mutual fund, IDLC Balanced Fund. "We started a cultural shift where investors are assisted by skilled and honest fund managers to ensure profitable return." Mr. Arif Khan, an aficionado on financial discipline, asserted. The company is also planning to bring more innovative products such as venture capital and private equity in near future. "We are the pioneer of at least 10 innovative and diversified products in our financial market and have now launched a similar product for the small investors," the IDLC MD said.

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He hoped IDLC Balanced Fund will help change the present scenario of the stock market as investors will get real professional services from a company such as IDLC. IDLC Asset Management Limited announced the launch of its first open end mutual fund - IDLC Balanced Fund- on May 22 last. IDLC Finance Limited is the Sponsor of the fund and IDLC Asset Management Limited is its Asset Manager. Investment Corporation of Bangladesh is the Trustee & Custodian of the fund. IDLC Balanced Fund offers fund management through skilled Fund Managers mitigating investment risk. Investors can invest anytime and any amount starting from BDT 5,000 (for individuals) and BDT 50,000 (for institutions) with the facility of withdrawing funds at any time at Net Asset Value with the lowest exit load. Investors can also check the present value of their investment every week on the company's website. The objective of IDLC Balanced Fund is to deliver the investors regular annual income as well as capital gain in the long term. IDLC Balanced Fund is an ideal fit for people looking for a long-term investment vehicle to better achieve their life goals. Mr Arif Khan said, "IDLC launched its first mutual fund for the common people of Bangladesh. As a result of mass participation presumably with a long-term orientation, our capital market will receive a good, stable flow of fund. Most importantly, since individual investors will participate in the capital market through institutionalised products like mutual funds, volatility of the market will be reduced." "IDLC Balanced Fund will give people a tool to better manage their fund and grow it consistently over a longer horizon to materialise their aspirations of life. We expect our initiative will benefit our citizens, our capital market and, as a whole, the nation." IDLC, as one of the most progressive financial brands, has always tried to come up with financial products/ services to enrich the lives of people. It believes, through the launching of mutual funds, a healthy investment-worthy environment will be created which will encourage common people to consider investment for their better financial growth. This initiative will bring a positive change in the investment practices of the common people of this country. "We are the pioneers among all the FIs in deposit mobilisation, factoring, SME financing, issuance of securitised bond." Mr. Arif said. He attributed full compliance of corporate governance and real professionalism to the 'rip-roaring success' of IDLC Finance in all business areas. "We are far ahead of many of the commercial banks as far as profit and growth margins are concerned," he pointed out. IDLC Finance achieved 33 per cent growth in profit in the just concluded half year. "From day 1, our board remains professional without any interference in the company's day to day operation." "Our first managing director, Aminul Islam, a legend in the industry, developed a culture of openness in the company to build an in-house leadership which helped us to groom as many as six professionals who later became chief executive officers of other FIs," Mr. Arif said the company evaluates the performance-driven work culture and the IDLC officials-employees know it very well. Commenting on the stock market scenario, he said in last 6 months, stock market rose roughly 15 per cent. "It is a very good return for affected investors which helped a lot to clear their outstanding margin loans," the IDLC top executive said. "The stock market is now almost free from a huge burden of stuck-up loan due to 'margin call', a continuous adjustment process to settle the loans," Mr. Arif disclosed. "Since 2014, IDLC is clear from accumulated margin loan burden after provisioning."


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Hailing the functioning of FRC and demutualisation of bourses, Mr. Arif who once served as Member of BSEC said if insider trading law is updated it will help to develop the stock market. Outlining the future vision of the company, he said expansion of SME financing and launching of venture capital for start-up entrepreneurs are among the company's planning. "An eco-system is being created for the young entrepreneurs under the Alternative Investment Rules and being a responsible financer, IDLC will do its level best in this regard." "We must not forget that the present world's movers and shakers once began their journey as start-ups," Mr. Arif said. "Our NPL alone tells you that the company has never been subjected to prescribed loans from board. The average Non Performing Loan (NPL) in the market is 10 per cent but the actual NPL is higher than this because some of the bad loans are rescheduled and restructured. So, the real NPL which is termed as extended NPL is 17%-18% in the market. But our NPL is less than 3%. Interestingly, IDLC has been able to maintain its NPL in the same range for the last 32 years. I believe it is a resounding achievement by any financial organisation in the country. Because it shows that we have always been channelizing the depositors' money in proper places. Many of the commercial banks are making less profit than us. IDLC made a profit of Tk 1.78 billion after tax last year. In the first quarter of this year, IDLC made a profit of Tk 600 million which is higher than at least 80 per cent commercial banks of the country. The size of our loan book is a little over Tk 70.0 billion now. About 45 per cent of this loan is concentrated in the SME sector. So, we have almost half of our loans in the SME sector and we plan to disburse even more." Source: http://print.thefinancialexpress-bd.com/2017/07/20/178325 64PC LISTED MFS BELOW FACE VALUE The mutual fund (MFs) sector is yet to be able for attracting investors despite other sectors of listed securities are witnessing rally riding on investors' participation. Earlier, the share prices of many listed securities, other than MFs, also were below face value of Tk 10 each. The prices of those securities, except very few ones, went above face value following the continuous upward trend of the capital market. But the market prices of the units of 64 per cent listed MFs are still below the face value, although the prices of only six companies of other sectors are below face value. Of 35 listed MFs, the market prices of 24 ones presently are existing below face value, according to information of Dhaka Stock Exchange (DSE). The MFs whose market prices are below face value are: First Janata Bank MF, AB Bank 1st MF, CAMP BDBL MF 01, BDH First MF, EBL First MF, EBL NRB MF, EXIM Bank 1st MF, First Bangladesh Fixed Income Fund, Green Delta MF, ICB 3rd NRB MF, ICB Employees Provident MF 1 : Scheme 1, ICB AMCL Sonali Bank Limited 1st MF, IFIC Bank 1st MF, IFIL Islamic MF-1, LR Global Bangladesh MF One, MBL 1st MF, NCC Bank MF-1, Phoenix Finance 1st MF, PHP First MF, Popular Life First MF, Prime Bank 1st ICB AMCL MF, Trust Bank 1st MF and Vanguard AML BD Finance MF One. Asked, the managing director of AIMS of Bangladesh Yawer Sayeed said the performance of the fund managers is also one of the reasons responsible for sorry state of the MFs. "MFs are performance based and many MFs do not disburse lucrative cash dividends. As a whole, there is no diversification in MF sector for attracting investors," Mr. Sayeed said. Of 30 banks, the market price of only ICB Islamic Bank is now traded below face value. Among the companies of pharmaceuticals & chemicals, which comprises 28 companies, the share price of Beximco Synthetics is below face value.

http://print.thefinancialexpress-bd.com/2017/07/20/178325


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The textile sector has 48 listed securities and the share prices of Familytex (BD) and Metro Spinning are below face value. Travel & Leisure sector comprises four companies and the price of two companies such as United Airways (BD) and Bangladesh Services are below face value. Source: http://print.thefinancialexpress-bd.com/2017/07/20/178326 FIN MIN ASKS BB NOT TO GIVE CASH INCENTIVES TO REMITTERS Bangladesh Bank is in a quandary about how to give incentives to remittance senders to increase inward remittance as finance minister AMA Muhith has rejected a move to pay cash incentives to non-resident Bangladeshis who send remittance through legal channel. Muhith issued a note to the finance ministry and the central bank on June 4 to find a solution to reduce the service charge on inward remittance which will be remitted through banks, western union, bKash and post office. It is not possible to offer cash incentive to the NRBs as the initiative will create a dual currency exchange rate in the country which was recognised as bonus system during Pakistan period, he said. Against the backdrop of Muhiths decision, the central bank on Wednesday arranged a discussion with the senior executives of the top 20 remittance-earning banks at its headquarters in the capital. BB executive director Ahmed Jamal presided over the meeting where the banks opined that they did not take any service charge from the NRBs against the money they send home. An insignificant amount of inward remittance is now being remitted through the exchange houses owned by the Bangladeshi banks and citizens, a commercial banker told New Age after the meeting. The NRBs send majority of remittances through the foreign banks and exchange houses while the central bank could not play any role, he said. Muhith on July 8 said the cost of remittance transfer would be reduced soon to increase its flow to the country. To increase the inflow of remittance, the government would reduce remittance transfer fee from the next month, he said. Citing Muhiths decision, a BB official said that a dual currency exchange rate means the receivers of inward remittance would enjoy a higher exchange rate against the greenback while other clients would get the usual rate offered by the banks, a BB official explained. He said that the central bank had been suffering a dilemma to implement the finance ministers decision. The central bank and Bureau of Manpower Employment and Training earlier planned to take initiative to give cash incentives to NRBs so that they are encouraged to send remittance through the legal channel. Countrys inward remittance slumped to a six-year low to $12.76 billion in the recently concluded fiscal year (2016-17), according to the BB data. The inward remittance decreased by 14.47 per cent, or $2.16 billion, to $12.76 billion in FY17 compared with that of $14.93 billion in FY16. Many NRBs preferred illegal channels to send their hard-earned money to their near and dear ones because of a lower exchange rate of the Taka against the US Dollar in the banking channel that ultimately put a bad impact on the inward remittance, the official said. People engaged in the Hundi cartel usually offer a higher rate for the greenbacks than the rate the banks give, which is designed to lure the NRBs to send their money through illegal Hundi channel, he said. Source: http://www.newagebd.net/article/20129/fin-min-asks-bb-not-to-give-cash-incentives-to-remitters

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BANKS ASKED TO SET UP FDI HELP DESK AT KEY BRANCHES Bangladesh Bank has instructed the commercial banks to set up FDI help desk at their key branches for boosting foreign direct investment in the country. The BB on Tuesday issued a circular to all banks asking them to set up the help desk at their respective head offices and main branches of authorised dealers in Dhaka and Chittagong. The banks have also been asked to man the desk with competent officials. The central bank has asked the banks to open the FDI help desk within 30 days from the date of issuance of the circular. A BB official said that the central bank had taken the initiative to attract foreign investors through giving required supports from the desk. According to the latest central bank data, the gross inflow of foreign direct investment increased by 13.73 per cent to $2.65 billion in the July-May period of the recently concluded fiscal year 2016-17 from $2.33 billion during the same period of FY16. Besides, the net FDI inflow rose by 27.25 per cent to $1.62 billion in the first 11 months of FY17 from $1.27 billion during the corresponding period of FY16. Source: http://www.newagebd.net/article/20130/banks-asked-to-set-up-fdi-help-desk-at-key-branches BANGLADESH BANK EYES REDUCING REMITTANCE FEES Bangladesh Bank (BB) is likely to determine a low transfer fee for remittance on July 24 with a view to encouraging non-resident Bangladeshis (NRBs) to send more remittances through banking channel. The central bank high-ups organised a meeting with senior officials of top 20 remittance recipient banks to talk over the issue at its head office on Wednesday. BB Executive Director Ahmed Jamal presided over the meeting while senior officials from Agrani Bank, Bank Asia, Brac Bank, Janata Bank, National Bank, Mercantile Bank and Islami Bank, among others, attended the event. Talking to the Dhaka Tribune, one of the government bank representatives said: We met the central bank authorities to fix a reduced remittance transfer fee. But todays meeting was a preliminary meeting, the final decision would be taken in the next meeting on July 24. When contacted, Ahmed Jamal declined to make any comment over the matter. However, he said they sat with top 20 remittance receiver banks after remittance inflows into the country went down. Commissions taken by the exchange houses abroad increase the cost of remittance transfer, Ahmed Jamal said in a meeting with journalists on Tuesday. Bangladesh Bank is concerned about the declining trend of remittance flow. The central bank will advise the banks to cut the remittance transfer fee so that its flow goes up in coming months, he told the meeting. BB Executive Director Shubhankar Saha, also the spokesperson of the central bank, said: The government has planned to subsidise the remittance transfer cost. Moreover, we are discussing the issue with the remittance receiving banks to reduce the remittance fee. While talking to journalists after inauguration of the newly constructed fountain in Naiyorpul area of Sylhet on July 8, Finance Minister AMA Muhith said they would bring down the cost of remittance transfer soon to increase its flow into the country. The tendency of settling abroad is rising, which is the key reason behind the less remittance inflow into Bangladesh. The government will reduce fees for remittance transfer from next month to develop the scenario, he said.

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The remittance inflow into Bangladesh dropped to $12.76 billion in the last fiscal year from $14.93 billion a year ago, marking a 14.48% decline year-on-year despite several moves taken by the government to boost the inflow. The remittance in the 2016-17 fiscal year is also the lowest in the last five years, according to the latest Bangladesh Bank data. Source: http://www.dhakatribune.com/business/banks/2017/07/19/bangladesh-bank-eyes-reducing-remittance-fees/ SEVEN LOCAL FIRMS GET APPROVAL FOR OVERSEAS INVESTMENT Bangladesh Bank has approved the proposals of seven local firms to bring their capital aboard for investment. Central banks Executive Director ANM Abul Kashem made the disclosure while speaking at a workshop in Dhaka Tuesday. However, economists consider overseas investment by local firms uncomfortable when the country needs more local and foreign investment. They said thousand of crores of taka is being laundered abroad and the government, meanwhile, is giving the firms an opportunity to invest abroad. Dr Naznin Ahmed, senior research fellow of Bangladesh Institute of Development Studies (BIDS), told Bangla Tribune: Bangladesh will be benefited if the interest from the overseas investment can be brought to the country. But, it would be better if the money was invested here. She also stressed the need for improving the investment situation of the country to discourage overseas investment. It was learnt that Square Pharmaceuticals will invest $8 million in Kenya, DBL Group will invest $8 million to build an RMG factory in Ethiopia, MJL will invest $547,000 in a joint venture in Myanmar. Bangladesh Bank official Abul Kashem said ACI Pharmaceuticals was permitted to pay $3 million for medicine patents. He said Incepta Pharmaceuticals was permitted to invest 10,000 in the UK. Spectrum Engineering will invest $7,500 in Singapore. Service Engineering was also permitted to invest $7,500. BSRM was permitted to invest $4.6 million to build a factory in Kenya. According to the central bank, the seven firms will have to fulfil a set of conditions, including bringing back the interest money and not laundering money. On the other hand, the central bank rejected Nitol-Niloy Groups proposal to buy cultivable land in Uganda, Summit Groups proposal to build a shipyard factory in Singapore, Deshbondhu Groups proposal to build a sugar factory abroad, Meghna Groups proposal to set up industry in Cambodia and Pran Groups proposal to launch a company in India. Furthermore, Bangladesh Bank approved several other firms proposal for foreign investment and sent the proposals for the Foreign Ministrys opinion. These include Akij Groups $1.61 billion to buy two Malaysian companies, clothing giant Ha-Meem Groups $840 million to build an RMG factory in Haiti and Nitol-Niloy Groups $560 million to set up a bank in Gambia. At the same time, the central bank sent a letter to Finance Ministrys financial institutions division secretary Md Yunus Rahman to take the matter into consideration whether it would be right to allow overseas investments, instead of local investment. Regarding this, Bangladesh Bank Governor Fazle Kabir said: We have to achieve 8% GDP to become a higher middle-income country. To attain that goal, we will have to increase local and foreign investments.

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Source: http://www.dhakatribune.com/business/2017/07/19/seven-local-firms-get-approval-overseas-investment/

OPERATORS ADD 1.74CR NEW USERS IN 9 MONTHS Mobile phone operators added 1.74 crore new connections in the nine months to May this year. Market leader Grameenphone added 65.62 lakh new customers to its network during the period, which is 37.68 percent of the new connections added. Robi added 76.36 lakh or 43.27 percent of the new customers, the highest among all operators, thanks to its merger with Airtel and introduction of attractive data and voice services. In the period, Banglalink has got 24.66 lakh new subscribers while state-run Teletalk added 8.51 lakh. The new additions brought the total number of active mobile phone connections to 13.50 crore at the end of May, according to a report of Bangladesh Telecommunication Regulatory Commission. In August last year, the number of active connections had gone down to 11.78 crore mainly because of the launch of the biometric re-registration of mobile phone connections. Biometric re-registration began in December 2015 and ended in May last year. At that time, the industry lost more than one crore subscribers as the BTRC directed operators to deactivate SIMs that were not verified biometrically. Robi and Airtel together controlled only 26.50 percent of the market in August last year, which rose to 28.70 percent in May this year with 3.87 crore customers. In the post-merger scenario, our stronger network continues to drive transformative growth for the company, said Ekram Kabir, vice president for communications and corporate responsibility of Robi. Our last quarter results demonstrate the power of our brand, illustrate our potential to drive long-term growth and provide evidence that we are effectively executing integrated network for the benefit of our subscribers. With the new additions, Grameenphone now has 6.11 crore users with a 45.26 percent market share. As of May, Banglalink's controls 23.26 percent of the market with 3.14 crore subscribers while the numbers stand at 2.78 percent and 37.59 lakh for Teletalk. Source: http://www.thedailystar.net/business/telecom/operators-add-174cr-new-users-9-months-1435813 BANKS CAN'T CUT REMITTANCE SENDING COSTS: BANKERS Banks can do nothing to reduce the cost of bringing remittance to Bangladesh as they do not charge anything at all for channelling the hard-earned money sent by the migrant workers. Only the exchange houses of local banks abroad take a minimum commission from remitters for sending money, said bankers at a meeting with Bangladesh Bank at the latter's headquarters in Dhaka yesterday. The meeting was called to discuss how to cut the cost of sending money by the migrants amid a sharp drop in remittance income. Remittance inflow in 2016-17 has been the lowest in six years. Migrant workers sent home $12.77 billion last fiscal year, down 14.47 percent year-on-year. The fact is that banks don't charge for receiving money from the remitters or disbursing it to the beneficiaries, said a senior executive of a private bank. He said the cost of sending money is not responsible for the fall in remittance to Bangladesh as expatriates spend very minimal to send money home. Local exchange houses take comparatively less than foreign exchange houses. The local exchange houses are making a loss because of lower income from remittance. If the commission is withdrawn, it would be impossible for them to continue the business, said the banker.

http://www.dhakatribune.com/business/2017/07/19/seven-local-firms-get-approval-overseas-investment/http://www.dhakatribune.com/business/2017/07/19/seven-local-firms-get-approval-overseas-investment/http://www.thedailystar.net/business/telecom/operators-add-174cr-new-users-9-months-1435813http://www.thedailystar.net/business/telecom/operators-add-174cr-new-users-9-months-1435813


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The BB discussed with the banks on ways to bring down the cost, but it has not taken any decision in this regard, said Subhankar Saha, executive director of the central bank. A few months ago, the finance ministry sent a letter to the BB asking it to assess the cost of sending remittance and take steps to reduce the cost, if necessary. Bangladesh is the least costly corridor among the remittance recipient countries, according to the World Bank data. The average cost of sending remittance from Kuwait to Bangladesh is 3 to 4 percent of the amount sent while it is 2 to 3 percent for India. The cost is 3 to 4 percent for both Bangladesh and India for remittance sent from Singapore, according to the WB. Expatriates living in Saudi Arabia have to spend 5 to 7 percent to send money to Bangladesh, while the cost is 3 to 4 percent from Oman. The charge of sending money from the US and the UK is higher because of stringent compliance related to anti-money laundering regulations, said a central banker. Globally, sending remittances costs an average of 7.32 percent of the amount sent, according to the WB. Besides, South Asia remains the cheapest receiving region, with an average cost of 5.52 percent. Currently, there are 29 exchange houses abroad and many of them are loss-making, said a central banker. The slump in remittance is a result of the global economic crisis, fall in oil prices in Middle Eastern countries, Brexit and the Trump administration's policy aimed at migrant workers, said AB Mirza Azizul Islam, former finance adviser to a caretaker government. He said adjustment of the exchange rate could help remitters a little bit. There is a wide gap between the exchange rate in the kerb market and the interbank market. It should be minimised. Another option, he suggested, is to enhance the skill of migrant workers going abroad and diversify the destinations. The inter-bank exchange rate was Tk 80.64 per USD on Tuesday whereas it was Tk 82.80 in the informal market. Source: http://www.thedailystar.net/business/global-business/banks-cant-cut-remittance-sending-costs-bankers-1435795 TELCOS TO SPEND TK 22,600CR ON 4G SERVICES Private mobile operators are seeing no way of getting back within the first three years a substantial return of the over Tk 22,600 crore they will need to invest to roll out 4G services in Bangladesh. And their estimate has not even taken into account the spectrum charge. They say high spectrum charges and tax and low 4G device penetration and data price rates are to blame. Top operators Grameenphone, Banglalink and Robi got back only Tk 6,000 crore of the Tk 32,000 crore invested in the first three years of introducing 3G services, says the Association of Mobile Telecom Operators of Bangladesh (AMTOB). This is a serious concern for the investors, said AMTOB Secretary General TIM Nurul Kabir. Recent service guidelines have narrowed down the scope for business, which investors think will discourage further funding, he said. Terming some of the guidelines unrealistic, mobile operators urged the government to review the issue with a holistic approach. The government should fix a rational price for the spectrum. The operators will not just buy spectrum, they will also need to invest a significant amount of money to take the 4G services to people's doorsteps, said Kabir.

http://www.thedailystar.net/business/global-business/banks-cant-cut-remittance-sending-costs-bankers-1435795http://www.thedailystar.net/business/global-business/banks-cant-cut-remittance-sending-costs-bankers-1435795


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The government recently posted two guidelines on 4G services and spectrum auction at the telecom division's website and the operators sent back their feedback. The proposed base prices per megahertz were $30 million (900 MHz band), $35 million (1,800 MHz) and $27 million (2,100 MHz). The operators are hoping for the price per megahertz to stay below $15 million. In previous requests to halve the price, AMTOB reasoned that revenues were decreasing against rising data consumption. They called for declaring the existing spectrum bands to be truly technology neutral, giving them the choice to use their spectrum as they see fit. The guidelines say the operators should bring in foreign investment and none can be attained from local banks. Top operators question the need for foreign loans, saying Bangladeshi banks now have enough money to lend at low interest rates. They also reason that investment gathered from local banks would help keep the money within Bangladesh. Another instruction is that the speed must be 100 megabits per second. Quality service has to be ensured while the operators have to store all relevant data at their own expense until Bangladesh Telecommunication Regulatory Commission gives permission to delete those. Industry insiders say providing such speeds requires a lot more investment. Moreover, a massive optical fibre network would be needed, which only a handful of entities are allowed to lay, further pushing up the operators' costs. In the letter, the operators said they also had to keep in mind contingent liabilities such as SIM replacement tax and VAT. Source: http://www.thedailystar.net/business/telecom/telcos-spend-tk-22600cr-4g-services-1435828 MANY GARMENT MAKERS LAUNCHED OWN BRANDS FOR LOCAL MARKET Many large export-oriented apparel manufacturers have launched their own fashion brands for local customers, adding value to the booming retail market in the country. After the success in the global market, the top exporters now are aiming for the local market with their own brands and already earned huge popularity among local customers. As the buying capacity of people has increased with the growing middle class, the size of the local apparel industry has been extending in an unprecedented pace. Around 15 large export-oriented apparel manufacturers, who have been supplying clothing items to the top western brands, have created their own retail brands. Owing to their popularity, they are now opening flush stores across the country. Brands like Yellow, Sailor, Texmart, Occult, Trends, Amber Lifestyle, Artisti, Plaire, Bar Code, Shoishab, Dhaka Republic and Noir have already gained huge popularity in the local market. Yellow, an upscale fashion brand of Beximco Group, started its journey in 2004 as a retailer and so far set up 15 outlets across the country. It has an array of fashion clothing, fragrance, and accessories for men, women and children, textiles for home decoration, avant-garde ceramic items, paintings; books, and many more items in its collection. Epyllion Group, which supplies garment items to western consumers, opened its local brand Sailor in 2015 and now has five outlets in Dhaka.

http://www.thedailystar.net/business/telecom/telcos-spend-tk-22600cr-4g-services-1435828


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Apparel exporter Giant Group opened its first retail store in Dhaka in 1998 under the name Texmart and later established another brand Occult in 2007. The company is already well recognised as a pioneer in the local retail clothing industry. Faruque Hassan, Managing Director Giant Group, said he realised long ago that Bangladeshi market can offer massive opportunity for fashion brands. With this realisation, I launched a retail brand Texmart in 1998 in addition to the exports, he said, adding that local fashion industry is booming despite facing many challenges. Artisti, a concern of export-oriented Milon Garment, was also among the first local clothing brands and got tremendous popularity after starting its journey in 2000. Trendz, a concern Babylon Group, started its journey with its first outlet in Bashundhara City on October 14 in 2000 and now this fashion brand has eight outlets in Bangladesh. Amber Lifestyle, a concern of Amber Group, opened its first retail shop in 2014 and now has four stores across the country. Shahidul Hasan, director of Amber Group, said Its a good opportunity that comes with a lot of challenge. It is not about denim, we have to bring all kinds of products for men, women and child at affordable prices. He also said they have an expansion plan but it will depend on the time and demand. Noir, a fashion brand of export-oriented garment group Evince, entered the local retail market in 2014 and now have two outlets in Dhaka. Another export-oriented group Sayem Group launched its local brand Plaire a few years ago. Chittagong-based Smart Jeans Ltd opened their retail brand Bar Code and Shoishab. Dhaka Republic is another brand brought by garment manufacturer Sonia Group. Market insiders said the flourishing local fashion brands have helped the country to cut the import of apparel items to the minimum level. Bangladeshs economy has been expanding and it has a very large market. Its a good sign for the local market and many export-oriented apparel manufacturers have launched their own retail brands, said Shahidullah Azim, former vice-president of BGMEA. Shahidullah Azim, also the chairman of Classic Group, said he also launched an online store called 'Brent Wood'. I launched this online fashion store and now getting orders from abroad, he said. With the success of the retail brands in local market, sector insiders said now the apparel manufacturers might be focusing on expanding their retail business to other countries, but this will be a huge challenge. As they already have vast experience in the international market, now they are thinking to go global with their retail stores, they said. Artisti, a local brand of Milon Garments, has extended its boundary up to Singapore while Beximcos Yellow has marked its footprint in Pakistan. Its a tough job and a concerted effort by the government and apparel makers is needed to expand the local retail shops internationally. Extensive marketing and promotion along with maintaining the quality standard are also very important for expanding the retail business to others countries, said BGMEA Senior Vice-President Faruque Hassan said. Denim specialist Mostafiz Uddin, CEO of Bangladesh Apparel Exchange, said in order to excel at a global scale, local brands will have to know the demand of global consumers and have to bring new trends and fashions with the change in season. Source: http://www.daily-sun.com/post/241922/Many-garment-makers-launched-own-brands-for-local-market

http://www.daily-sun.com/post/241922/Many-garment-makers-launched-own-brands-for-local-markethttp://www.daily-sun.com/post/241922/Many-garment-makers-launched-own-brands-for-local-market


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daily news flash, 20th july, 2017 - ebl securities€¦ · idlc finance sees 33pc growth in profit...

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