Macro
Bangladesh’s new forex rules to stem taka losses: Moody’s
Bangladesh Bank’s new currency strategy may help stabilize the taka this year, after it underperformed most Asian peers in 2024, according to analysts. The approach, which involves a daily recalibration of the exchange rate, is a step toward a freely floating currency. It builds on the crawling peg system introduced last year, allowing movement in the currency within a band. That has helped bring down the six-month volatility in the taka after a spike last year, data compiled by Bloomberg showed. “As the regime aims to reflect more closely the supply and demand of the taka and transaction data from banks, it could lead to more consolidation of the local currency,” said Young Kim, an analyst at Moody’s Ratings in Singapore. “The strategy also aims to define clear foreign exchange intervention operations.”
https://www.tbsnews.net/bangladesh/bangladeshs-new-forex-rules-stem-taka-losses-analysts-1078626

Online income tax return filings increased over 250% in FY 2024-25
Bangladesh has witnessed a rise in online income tax return submissions, with the number of e-returns increasing by more than 250% in the 2024-25 fiscal year, during the penalty-free period for filing income tax returns. The digital tax filing system, developed by local technology firm Synesis IT, has seen over 14 lakh 32 thousand taxpayers submit their returns online according to the National Board of Revenue (NBR) on February 25, compared to approximately 5 lakh 26 thousand in the previous fiscal year.
https://www.thedailystar.net/tech-startup/news/online-income-tax-return-filings-increased-over-250-fy-2024-25-3834391

Bank
Bad loans soar by Tk1.34 lakh crore in H2 of 2024
Non-performing loans (NPLs) in Bangladesh soared by Tk1.34 lakh crore in the last six months of 2024, reaching a total of Tk3.45 lakh crore by December. The new figure of defaulted loans accounts for 20.2% of the banking sector’s total loans, according to data released by the Bangladesh Bank on Wednesday. NPLs stood at Tk2.11 lakh crore at the end of June 2024, accounting for 12.56% of total loans. At the press briefing, the central bank governor said the rise in NPLs is largely due to the end of a long-standing lack of transparency in reporting bad loans and recent changes in loan classification policies.
https://www.tbsnews.net/economy/default-loan-increased-tk2-trillion-2024-1079026

State banks ahead in remittance race
State-owned banks attracted a higher inflow of remittances than private banks by offering more competitive rates to settle payments for government Letters of Credit (LCs) in the absence of dollar support from the central bank. According to central bank data, state-run banks – Sonali, Agrani, Janata, and Rupali – received $687 million in just the first 22 days of February this year, exceeding the $659 million received between January and March 2024.
https://www.tbsnews.net/bangladesh/state-banks-ahead-remittance-race-1079616

Fuel & Power
Russia agrees to extend loan disbursement for Rooppur until 2026
Russian nuclear corporation Rosatom has agreed to extend the credit utilisation period by two years for the Rooppur Nuclear Power Plant (RNPP), a key project for strengthening Bangladesh’s energy security. According to Economic Relations Division (ERD) sources, the total cost of the Rooppur project is estimated at $12.65 billion, with 90%, or $11.38 billion, funded by a loan from the Russian government and 10% covered by Bangladesh’s own financing. Under the agreement, the loan was due for disbursement by December 2024.
https://www.tbsnews.net/bangladesh/energy/russia-agrees-extend-loan-disbursement-rooppur-until-2026-1079571

Textile
Unit prices of Bangladesh’s RMG exports to the EU fell in 2024
Bangladesh’s readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value. The South Asian nation’s apparel shipments to the EU rose by 4.86 per cent year-on-year to $19.77 billion in 2024, according to Eurostat data. During this period, Bangladesh exported 1,230.51 million kilogrammes (kg) of readymade garments to the EU, up 10.18 per cent from the previous year’s 1,116.77 million kg. Within a year, the per-unit price fell to $16.07 per kg in 2024 from $16.88 per kg in the previous year, marking a sharp 5 per cent drop.
https://www.thedailystar.net/business/economy/news/unit-prices-bangladeshs-rmg-exports-the-eu-fell-2024-3834756

Beximco Textiles: All factories closed, workers terminated
All factories under Beximco Textiles have been shut down and all workers terminated from 28 February. The dues of workers from these factories will be paid in phases starting 9 March. The ministries of finance and labour will provide the funds, with the labour ministry directly responsible for disbursing the payments, according to a Beximco notice.
https://www.tbsnews.net/economy/rmg/beximco-textiles-all-factories-closed-workers-terminated-1079581

Services & Real Estate
BHBFC’s home, other loans get costlier
Home loans from Bangladesh House Building Finance Corporation (BHBFC) now get costlier as the government approves a proposal raising interest rates for its various credit schemes, officials say. Amid rise in the cost of fund and overhead costs, the corporation in December last sought finance ministry’s nod to raise interest and got the approval from the ministry earlier this week, they add. Earlier, the BHBFC board of directors had approved this interest-hike proposal. With the ministry all-clear, the corporation will now charge 1.0-percent higher interest compared to the existing rate of 8.0 per cent for all other loans, excepting flat loan, across the country bar Dhaka and Chattogram metropolitan areas.
https://today.thefinancialexpress.com.bd/last-page/bhbfcs-home-other-loans-get-costlier-1740593898

Insurance
Insurance sector faces crisis
The liquidity crisis has intensified so much in the insurance sector that the accumulated amount of unsettled life insurance claims increased by over 66 percent in the last five years to the second quarter of 2024. Moreover, insurance penetration in Bangladesh currently hovers around 0.5 percent—placing it among the lowest globally—compared to the emerging markets’ average of 3.3 percent, India’s 3.2 percent, and China’s 2.4 percent, according to data from the Insurance Development and Regulatory Authority (Idra).
https://www.thedailystar.net/business/economy/news/corruption-plagued-insurance-sector-overlooked-reforms-3834766

Miscellaneous
Struggling paint industry looks to innovation for revival
The local paint industry is facing challenges from high taxes, rising costs, and low demand due to the ongoing economic slowdown, but innovation and eco-friendly products offer hope for a sustainable future, according to industry insiders. “The paint industry is important for buildings and their longevity. But because of new taxes and rules, companies are facing big problems,” said Md Quamrul Hassan, chief business officer of ACI Consumer Brands, which markets products under the brand Dulux Paints Bangladesh. “The total tax on paint is 89 percent, which is excessive. The government should see paint as a necessity for buildings, not a luxury,” Hassan said.
https://www.thedailystar.net/business/news/struggling-paint-industry-looks-innovation-revival-3833951

Stocks
Meghna Petroleum’s H1 profit tops Tk300cr on FDR income
Meghna Petroleum, a state-owned fuel supplier, reported a profit of Tk301 crore in the first half of the current fiscal year, posting a 59% year-on-year growth. The sharp rise in profit was mainly driven by higher income from fixed deposit receipts (FDRs) amid rising interest rates. The company’s earnings per share (EPS) also jumped to Tk27.82 in H1 of FY25, up from Tk17.48 in the same period of FY24.
https://www.tbsnews.net/economy/stocks/meghna-petroleums-h1-profit-tops-tk300cr-fdr-income-1079536