Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
5Activity
0 of .
Results for:
No results containing your search query
P. 1
Monthly Business Review

Monthly Business Review

Ratings: (0)|Views: 360 |Likes:
Published by nusrat amin

More info:

Published by: nusrat amin on Oct 23, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/26/2012

pdf

text

original

 
www.idlc.com
MONTHLY BUSINESS REVIEW
September 2009
Vol. 5 Issue 09
Industry and Equity Analysis Team, Credit Risk Management , IDLCFinance Limited
 
 
Pae 1of 12
Monthly Business Review
September 2009
CONTENTS...
ECONOMY AND BUSINESS
................................................................1
 
SELECTED ECONOMIC INDICATORS.....................................................3
 
IMPORT LC STATISTICS ....................................................................3
 
EXPORT STATISTICS ...................3
 
REGULATORY NEWS
...........................................................................3
 
INTERNATIONAL
...................................................................................4
 
MARKET ROUNDUP
..............................................................................5
 
WEEKLY CURRENCY ROUNDUP............................................................5
 
EXCHANGE AND FORWARD RATES......................................................5
 
TREASURY BILL/BOND AUCTION INFORMATION................................5
 
INTERNATIONAL COMMODITY PRICES.................................................5
 
IDLC NEWS
..............................................................................................5
 
NEWS IN BRIEF
......................................................................................6
 
ECONOMY..................................................................................................6
 
BUSINESS-GENERAL...............................................................................6
 
BUSINESS - FIRM SPECIFIC....................................................................6
 
TRAINING / SEMINARS / WORKSHOPS..................................................7
 
REWARDS AND RECOGNITIONS............................................................7
 
CSR ACTIVITIES IN THE MONTH.............................................................7
 
INTERNATIONAL.......................................................................................7
 
UPCOMING EVENTS
.............................................................................8
 
KEY DIPLOMATIC / INTERNATIONAL ORGANIZATIONSAPPOINTMENTS
....................................................................................8
 
MANAGEMENT CHANGE - BANKS & FIS
.......................................8
 
MANAGEMENT CHANGE - OTHER ORGANIZATIONS
................8
 
CAPITAL MARKET REVIEW
...............................................................9
 
DSE TOP 15 APPRECIATING ISSUES IN THE MONTH..........................9
 
DSE TOP 15 DECLINING ISSUES IN THE MONTH.................................9
 
DSE CAPITALIZATION AND GAINING, LOSING & UNCHANGEDISSUES.......................................................................................................9
 
DSE INDUSTRY-WISE STATISTICS.......................................................10
 
MOVEMENT OF DSE AND CSE INDICES..............................................10
 
FORTHCOMING IPO APPROVED BY SEC............................................10
 
INTERNATIONAL MARKET MOVEMENTS............................................10
 
YEARLY PROFIT & DIVIDEND DECLARATIONS IN SEPTEMBER......11
 
DIVIDEND DECLARATIONS IN SEPTEMBER.......................................11
 
MUTUAL FUNDS VALUE AT THE END OF AUGUST............................11
 
SELECTED DSE NEWS OF THE MONTH..............................................11
 
FINANCIAL GLOSSARY..........................................................................12
 
Prepared by:Industry and Equity Analysis TeamCredit Risk ManagementIDLC Finance Limited
If you have any comments and/or suggestions, please write to creditriskmgt@idlc.com  
ECONOMY AND BUSINESS
Bangladesh ranks 20
th
in list of food shortage risk
Most of sub-Saharan Africa and South Asia are facing extreme orhigh risk of food shortages, according to a ranking of 148 nationsobtained by AFP on September 07, 2009. The three mostpopulous countries in South Asia also face food precariousness:Pakistan, ranked 11
th
on the index, is at "extreme risk," whileBangladesh and India are both at "high risk," ranked 20
th
and 25
th
 respectively. The five countries topping the risk list -- Angola,Haiti, Mozambique, Burundi and Democratic Republic of Congo --are all mired in poverty, but other factors also boost vulnerability.
 
The United States is least at risk followed by France, Canada,Germany and the Czech Republic, according to the Food SecurityRisk Index, calculated from dozens of variables that determine acountry's capacity to feed its people.
Loan defaults spike, state banks better off
Bank loan defaults increased by 0.22% or BDT 4.92 bn in the firstsix months of this calendar year, but state banks have been ableto bring the rate down through rescheduling. On June 30, 2009,banks registered BDT 2187.29 bn in outstanding loans, of whichBDT 229.73 bn or 10.5% was counted as loan defaults. Theoutstanding loan reached BDT 2083.62 bn on December 31,2008, while loan defaults piled up to BDT 224.81 bn or 10.79% ofthe total unrealised loan.
 
LOAN DEFAULT TREND IN DEC’ 08-JUN’ 09
 
127.6456.9837.322.863.68119.2567.5739.22
State Banks Private Banks Foreign Banks SpecialisedBanks
in BDT bn
Default Loan as of Dec-08 Default Loan as of Jun-09
 
Tech products drive bank profitability
According to a recent Bangladesh Bank (BB) study on "InnovativeTechnology and Bank Profitability: The Bangladesh Experience",banks that adopt technology are more profitable and reduce risksas they gain maturity in offering such services. The use oftechnology-driven products by local banks does not date backlong. In 1998, one PCB had credit card facilities, while there wereno debit card facilities, ATMs or POS. Another foreign bankoperated credit cards and ATM service at the time. In 2006, 14out of 30 PCBs launched credit card services, 17 launched debitcards, 17 had ATM services, 7 had POS, 3 had internet while 22had online banking. Three out of the four state-owned banksintroduced debit cards in 2006. Now, almost all private bankshave the technology-driven business model to give better andfaster services to their clients. Nearly 100% of the 3,500 privatebank branches are computerized, which was 46% a decade ago.According to the latest BB data, payments and transactions bycredit card were nearly BDT 11 bn in June 2008, which was BDT20 bn for debit card, BDT 40.6 bn for ATMs and BDT 1.80 bn forPOS. The transactions were almost half in December 2007.
SoBs giving in to PCBs
State-owned commercial banks (SoBs) have been losing groundto private commercial banks (PCBs) in their transactions and
 
 
Pae 2of 12
Monthly Business Review
September 2009
according to Bangladesh Bank (BB) data, deposit and lendingposition of SoBs showed a dismal performance up to June, 2009as they trailed behind the PCBs by a large margin. The depositposition of SoBs until June 2009 stood at BDT 840 bn and loansand advances BDT 495 bn while the PCBs deposit was BDT1,600 bn and lending BDT 1,388 bn. The advance of the SoBswas 59% of their total deposit while it was 87% of the PCBs, thedata revealed.
 
The number of SoBs branches up to July this yearwas 3,347 whereas the number of branches of PCBs was 2,142.
Investments in EPZsM/s Vancot Limited,
a Bangladeshi company, will investUSD 9.865 mn in setting up a knit garments manufacturingindustry in the Karnaphuli EPZ. The 100% local company willcreate employment opportunities for 3560 Bangladeshiworkers including four foreign nationals.
Poor infrastructure suffocates businesses
Bangladesh has moved up to the 106
th
position among 133economies this year from the previous year’s 111
th
among 134countries in the global competitiveness index, but inadequateinfrastructure, corruption, low-quality higher education andineffective bureaucracy continue to plague the business sector.The country improved its rank slightly, advancing by five ranks, bymaking substantial progress in basic requirements includingmacro-economic stability and better performance of publicinstitutions in 2008, , according to the Global CompetitivenessReport (GCR) 2009-10 - a study by the World Economic Forumreleased recently.
 
Infrastructure in Bangladesh ranks among theworst in the world, securing only the 126
th
position in 133 nations.
THE MOST PROBLEMATIC FACTORS FOR DOING BUSINESS
 
20.316.015.410.89.35.24.74.63.42.62.41.81.51.10.7
Inadequate supply of infrastructureCorruptionInefficient government bureaucracyAccess to financingPolicy instabilityInadequately educated workforceTax regulationsGovernment instability/coupsCrime and theftInflationForeign currency regulationsTax ratesPoor work ethic in national labor forcePoor public healthRestrictive labor regulations
 Bangladesh goes down in global ranking
Bangladesh fell four notches to the 119
th
position in a survey of183 nations, mainly because of slower reforms, according to theseventh “Doing Business 2010” report jointly published by theWorld Bank and IFC and released globally on September 09,2009. The World Bank explains that Bangladesh has reformed inthree areas in the reported period (June 2008 to May 2009), butother countries have done more. Bangladesh has beenrecognized as the most active reformer in South Asia,implementing three reforms -- introduction of an online companyregistration system, corporate income tax cuts and expeditedcross-border trade by automating customs clearance systems.According to the report, Bangladesh has simplified business start-up by implementing an online company registration system,reducing the time required from 35 days to just a day. Bangladeshhas also reduced the corporate income tax rate from 40% to37.5%, while increasing the capital gains tax rate from 5% to15%.The time required to acquire a bonded warehouse wasreduced by three months, while the time needed to registerproperty dropped by nearly 200 days. Trade was expedited by anautomation of customs clearance at the Chittagong Port as itcondensed the time required to clear goods. However, the reportsuggests Bangladesh needs to adopt a more strategic andinstitutionalised approach to regulatory reforms to keep up with anincreasingly competitive global environment where other countriesare reforming fast. Among South Asian nations, Pakistan tops thelist with the 85
th
position, followed by the Maldives at 87, SriLanka at 105, Nepal at 123, Bhutan at 126, India at 133 andAfghanistan at 160.
Poverty reduction rate belies expectation during last 4 yrs
The rate of the country's poverty reduction has slowed down overthe last few years despite government's increased expenditure,about 60% of the annual budget outlays over the previous fewyears, on the reduction of hunger. A World Bank povertyassessment report said Bangladesh's poverty reduction rateslowed down between 2005 and 2008 due to food price shocksand regional disparity in government spending. Though the grossdomestic product grew at around 6% annually during 2005-2008,the poverty rate had fallen only two percentage points from 40%of the population as against the expected decline of around fivepercentage points during the period, according to the WB report. 
FDI prospect seen gloomy
Foreign direct investment in Bangladesh crossed USD 1 bn markin 2008 for the first time, but prospect looks gloomy for the currentyear due to delayed impacts of global recession. Bangladeshreceived foreign capital amounting to USD 1,086 mn in 2008, 63%more than that of 2007, according to the World Investment Report(WIR) 2009
 
of the UN Conference on Trade and Development(UNCTAD), released globally on September 17, 2009. Despite aninflow of billion-dollar foreign direct investment into the country in2008, the investment proposals registered with the investmentpromotion agency declined 9% in 2009. The investment boardhas registered BDT 42.61 bn worth investment proposals in thefirst eight months of 2009 as against BDT 46.68 bn proposalsduring the corresponding period of the previous year, according toBoard of Investment (BoI) data. Registration of domesticinvestment proposals also dropped significantly to BDT 126 bninvolving 971 projects during this period from BDT 154 bn on1104 projects in the same period of the last year.
Slack sales for mobile operators in August
Mobile phone operators added a mere 0.94 mn customers to theirnetworks in August 2009. According to BangladeshTelecommunication and Regulatory Commission (BTRC) statisticsreleased on September 29, 2009, the six mobile operatorsprovided mobile phone services to 48.91 mn subscribers tillAugust 2009. The total number of mobile phone subscribers was47.97 mn in July.
Service ProviderNew Subscriber Additionin August 2009[In Million]Total Subscribers atthe end of August 2009[In Million]
GrameenPhone (0.02) 21.13Banglalink 0.63 11.90AKTEL 0.30 10.20Warid Telecom 0.02 2.63PBTL (CityCell) 0.01 1.97Teletalk 0.00 1.08
Total 0.94 48.91

Activity (5)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Ganiul Zadid liked this
ehsanul1 liked this
Nitin Sharma liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->