Sunday, February 23, 2025

8 new banks must lend govt just after start of operation

Eight new commercial banks will have to take part in Bangladesh Bank auction to buy government securities just after starting their operation as the central bank earlier attached a condition that every new bank would be a primary dealer, said BB officials.
The banks, which are among nine banks that got the BB nod recently, will have to purchase the treasury bills and bonds from their paid-up capital at the initial stage, a BB official told New Age on Wednesday.
Union Bank will not participate in the securities auction as the bank was approved by the BB to operate as an Islamic bank.
A number of new banks have already applied to the BB seeking to get released as primary dealers for initial two years arguing that they may fail to attract the depositors for savings in the period.
But, the BB asked the new banks to participate in securities auction on mandatory basis after the start of their operation.
The eight primary dealer banks are Meghna Bank, Farmers Bank, Modhumoti Bank, South Bangla Agriculture and Commerce Bank, Midland Bank, NRB Commercial Bank, NRB Global Bank and NRB Bank.
The NRB Commercial Bank and the South Bangla Agriculture and Commerce Bank of the new banks have recently started their banking operation.
The current 12 PD banks are Sonali Bank, Janata Bank, Agrani Bank, NCC Bank, Uttara Bank, Southeast Bank, Prime Bank, National Bank, AB Bank, Mercantile Bank, Mutual Trust Bank and Jamuna Bank.
The new banks may fall in a difficult situation as they will have to purchase the government securities on mandatory basis before getting time and demand deposit from the clients, the official said.
The BB included the condition for the new banks to facilitate the government borrowing, he said.
Some old primary dealer banks earlier applied to the BB to get them released from the PD list as they were facing severe liquidity crisis, but the central bank did not accept their request.
Another BB official said that every bank would have to purchase the T-bills and T-bonds for maintaining their Statuary Liquidity Ratio against their clients’ deposit.
According to the BB regulation, a conventional bank needs to preserve its 19 per cent clients’ deposit as SLR by purchasing the T-bills and T-bonds of which 6 per cent is required to be preserved as liquid money with the BB’s account.
For this reason, the new banks do not need to purchase the government securities on mandatory basis to preserve their SLR as they have no deposit at the very initial stage, he said.
But the new banks will have to purchase the securities in accordance with the BB’s condition, he said.
The official, however, said the BB was yet to make decision to fix up the underwriting obligation for the
new PD banks to purchase the securities in their initial stage.
South Bangla Agriculture and Commerce Bank managing director Md Rafiqul Islam told New Age that he would discuss the issue with the other new banks after starting of their banking operation.
When asked whether the new banks would apply to the BB to get them released from the PD list, he said, ‘We (new banks) will hold a meeting in this regard to fix our respond to the central bank’s regulation about the PD.’
He said that the BB had recently sent the documents of the rules and regulations about the PD and his bank was now scrutinising the papers.
According to the BB data, the investment of the country’s all banks in the T-bills and the T-bonds was Tk 1,04,875.64 crore as on March 31. The investment by the banks in T-bills and T-bonds was Tk 1,02,617.44 crore as on February 28.

-With New Age input

Related News

Green Delta launches Bangladesh’s first insurance for pets

Initially, the policy will cover dogs and cats Sukanta Halder Green Delta has launched the country’s first insurance for pets, which the insurer sees as a milestone for the industry. This innovative product provides crucial financial protection for beloved companion animals, covering a range of unforeseen events, including accidental injuries, critical illnesses, and specified diseases, ... Read more

Apex Bangladesh Fashion Legacy 2025 combines cultural heritage with global style trends

Business Desk : dhakamirror.com Keeping pace with global fashion trends while celebrating the country’s fashion heritage, innovative designs, and sustainable production, the second edition of the “Apex Bangladesh Fashion Legacy Fashion Show 2025” was held in Dhaka. This grand event took place at the Aloki Convention Hall at 7pm on February 8. The fashion show ... Read more

Walton launches ‘AC Exchange Offer’

Business Desk : dhakamirror.com Walton on Wednesday announced launch of ‘AC Exchange Offer’ in which customers can buy Walton’s new air conditioners and get 25 per cent discount in exchange of their used ACs of any brands, said a press release. The company also announced a 5-year warranty facility for some printed circuit board models ... Read more

Grand event ‘GPH Maharaj Darbar’ held by GPH Ispat

Business Desk : dhakamirror.com GPH Ispat Limited, one of the leading manufacturers of steel rebar in Bangladesh, recently organised “GPH Maharaj Darbar-2024.” A total of 185 channel partners of the company across the country participated in the two-day event, according to a press release. The company recognised top-performing partners in various categories based on their ... Read more

SMC’s 50-year journey: innovation and success

News Desk : dhakamirror.com Social Marketing Company (SMC), a not-for-profit organisation, has completed 50 years of remarkable operations in the health sector of Bangladesh. Over the past five decades, the company has achieved significant milestones by marketing innovative products and delivering essential healthcare services. SMC recently organised a programme at the InterContinental Dhaka to celebrate ... Read more

Walton receives orders amounting Tk 350 crore at ATS Expo

Business Desk : dhakamirror.com Walton received orders worth around Tk 350 crore from various local and foreign companies at the “Advanced Technology Solution-ATS Expo 2024”, the country’s sole industrial expo organised by tech-giant Walton. SM Mahbubul Alam, managing director of Walton Hi-Tech Industries, provided the disclosure at the event’s closing ceremony. The three-day expo ended ... Read more

Big price drop on Walton desktops, extra 10% off for online orders

Business Desk : dhakamirror.com Walton Digi-Tech Industries Limited, the leading technology product manufacturing and marketing company in Bangladesh, has come up with a huge price drop on its desktop computers. This attractive price drop is applicable on the company’s AMD Ryzen™ processor-powered Avian series desktops. Under this, customers are enjoying a minimum price drop of ... Read more

bKash wins Mastercard Excellence Awards

Business Desk : dhakamirror.com bKash, the largest mobile financial service (MFS) provider in Bangladesh, recently won an award at the “Mastercard Excellence Awards” in recognition of its exceptional contributions to advancing financial inclusion and fostering a robust digital economy. The MFS provider was awarded by the US-based digital payment provider in the digital business category ... Read more

Dhaka resident buys Marcel fridge, wins car

Business Desk : dhakamirror.com Anisur Rahman, a resident of Uttarkhan, Dhaka, became the first lucky winner of a brand-new car under Marcel’s Digital Campaign Season-21, after purchasing a Marcel refrigerator. This campaign offers customers a chance to win a free car or assured gifts with the purchase of Marcel refrigerators, air conditioners, washing machines, and ... Read more

Banglalink teams up with Vivo to provide special data deals for youth

Business Desk : dhakamirror.com Banglalink, the country’s innovative digital operator, has partnered with vivo to launch a data offer specifically designed for tech-savvy youth. This collaboration aims to provide more convenient access to various digital services and exclusive content. Aligned with the ‘Youth’s Choice Smartphone’ proposition, Banglalink is offering 18GB of free data with the ... Read more

Emirates adjudged Best Airline in the World at the ULTRAs 2024 Awards

Business Desk : dhakamirror.com Emirates has once again been honored with the title of ‘Best Airline in the World’ at the esteemed ULTRAs 2024 Awards. Recognized by thousands of travelers worldwide, the airline stood out for its outstanding products, innovative services, and exceptional value-for-money experiences. Thierry Aucoc, Emirates Senior Vice President Commercial Operations in Europe ... Read more

Remittance rises in Oct, SOBs log larger share

Business Desk : dhakamirror.com Remittance inflow to Bangladesh increased by more than 21 per cent in October compared with that in the same month in the past year, as expatriates favoured official channels, mainly state-owned banks, following a significant political shift in the country on August 5. Bangladesh Bank data showed that remittance inflows reached ... Read more

Oppo celebrates tenth anniversary in Bangladesh with O Fans festival

Business Desk : dhakamirror.com Emphasising celebration and appreciation, OPPO, a leading global technology brand, is excited to announce its SUPER OFFER as part of the ‘O Fans Festival’ to celebrate its 10th anniversary in Bangladesh. The festival theme, “SUPER OFFER,” highlights unforgettable experiences for its dedicated fans through exclusive prizes and substantial super discounts on ... Read more

Bangladesh Travel and Tourism Council launched

Business Desk : dhakamirror.com A new think tank, Bangladesh Travel and Tourism Council (BTTC), has started its journey in a bid to create a network of professionals and businesses to foster collaboration and knowledge exchange in the local travel, tourism and hospitality sector. The council held its first meeting at a hotel in the capital ... Read more

Ethiopian airlines set to touch Dhaka’s runway

Business Desk : dhakamirror.com Ethiopian Airlines, the largest airline in Africa and part of the Star Alliance, will begin operations in Bangladesh next Sunday with its first flight on the new Addis Ababa-Dhaka route. The airline will provide five direct flights each week, giving Bangladeshi travelers access to over 155 global destinations, including major cities ... Read more

Unilever’s 15th edition of BizMaestros launches Nov 3

Business Desk : dhakamirror.com The 15th edition of BizMaestros-UFLP, the flagship business competition of Unilever Bangladesh, embodying the “Thrill of Real Business”, is all set to begin on November 3. As a leading player in the FMCG sector, Unilever Bangladesh has been at the forefront of skill development initiatives for over six decades, establishing BizMaestros ... Read more

Banglalink introduces affordable 4G Phone in partnership with Symphony

Business Desk : dhakamirror.com Banglalink and Symphony have joined forces to launch the “My First 4G Phone” campaign to make 4G technology more accessible and affordable. Through this campaign, they seek to bridge the digital divide by offering high-quality 4G phones at an unbeatable price, empowering more people to benefit from fast, reliable internet connectivity.The ... Read more

Bashundhara Toiletries introduces “Alora 2in1” Hair & Body Wash: first ever in Bangladesh

Business Desk : dhakamirror.com Bashundhara Toiletries announced the launch of “Alora 2-in-1” Hair and Body Wash, an innovative product designed to simplify your daily care routine. As Bangladesh’s first 2-in-1 solution for both hair and skin, Alora offers a unique blend of premium ingredients that cleanse, nourish, and revitalize. “Alora 2-in-1” is formulated with two ... Read more

350cc Royal Enfield set for Bangladesh launch on October 21

Business Desk : dhakamirror.com Ifad Motors, the manufacturer and sole distributor of Royal Enfield motorcycles in Bangladesh, is gearing up to launch the iconic motorcycle brand in the country on Monday (21 October). Four models will be introduced: Bullet, Meteor, Hunter, and Classic and the bikers will have 12 different colour options at competitive prices ... Read more

Luxury car sales slow to a near-stop

Market players blame economic and political uncertainty Jagaran Chakma Sales of luxury sedans and sport utility vehicles (SUVs) have been almost nil since July this year as customers have reined in spending amid the ongoing economic downturn and sudden political changeover in Bangladesh. According to various market insiders, sales have fallen by about 95 percent ... Read more