Bank time deposits surge under SMART push
Time deposits in banks increased by Tk 865.9 billion to Tk 14.82 trillion in July-March period of this fiscal year mainly because of rate rise under uncapped interest regime. The upturn began in July when the industry introduced a new benchmark called SMART for bank lending. The change gives a push to both deposit and lending rates. In June 2023, the growth of the FDR or time deposits was in single-digit territory, and since July till March, it had climbed to a double-digit high. However, demand deposits, mostly in savings accounts, grew a bit slowly at a single-digit rate to Tk 1.94 trillion during the period under review. The weighted average interest rate on all deposits in the banking industry stood at 5.2 per cent in March while it was 9.2 per cent in the non-bank financial institutions, according to Bangladesh Bank statistics. In June 2023, the weighted average interest rate on deposits was recorded at 4.4 per cent and non-bank 7.9 per cent.
Forex position to stabilise in next few months: Moody’s
US ratings agency Moody’s has projected that Bangladesh’s foreign exchange reserves position will stabilise over the next few months despite repeatedly failing to fulfil the IMF’s target and the drastic fall in international currency holdings over the past two years. It will be supported by the recent improvement of the current account balance to modest surpluses partly reflecting ongoing import restrictions, narrowing financial account deficits as business uncertainties gradually ease following the conclusion of the general elections in January. The latter also reflects progress on benchmarks and targets specified by the current $4.7 billion loan programme of the International Monetary Fund (IMF). On May 21 this year, the reserves stood at $18.61 billion. The Consumer Price Index grew 9.74 percent in April. It averaged 9.02 percent in the last fiscal year, the highest in more than a decade.
Full potential of SME remains untapped
Small and medium enterprises (SMEs) have played an important role in Bangladesh’s economic development, but their full potential remains untapped. With businesspeople and experts opining that the next few years will be more volatile due to geopolitical tensions and a global economic slowdown, the over 1 crore SMEs in Bangladesh can provide a welcome boost to the economy if an environment that allows them to prosper is created. Therefore, policymakers must work together in harmony and place a special focus on SMEs, which accounted for almost 25 percent of Bangladesh’s gross domestic product (GDP) in 2018, according to a Planning Division report. There were 78.8 lakh business establishments in the country, according to an Economic Census 2013 conducted by the Bangladesh Bureau of Statistics. Of them, 87.52 percent were cottage, 1.33 percent micro, 10.99 per cent small, 0.09 percent medium and 0.07 percent large enterprises. In the last 30-35 years, the agriculture sector has benefitted tremendously from research and development initiatives. For example, there are new varieties of rice that provide higher yields and are more resilient. The SME sector will also benefit from such initiatives as it could increase the diversity of products.
Source: https://www.thedailystar.net/business/economy/news/how-much-sme-potential-have-we-realised-3618551
Sun Pharma opens new plant in BD
Sun Pharmaceuticals (EZ) Ltd., a subsidiary of Sun Pharmaceutical Industries Limited (Sun Pharma), on Saturday announced the opening of a new manufacturing plant at Meghna Industrial Economic Zone in Narayanganj. The state-of-the-art facility is equipped with the latest technology and conforms to cGMP standards. It has an annual production capacity of approximately 1.0 billion tablets and capsules. Sun Pharma is the world’s fourth largest specialty generics company with presence in specialty, generics and consumer healthcare products. It is the largest pharmaceutical company in India and is a leading generic company in the US as well as global emerging markets. Sun Pharma’s high growth global specialty portfolio spans innovative products in dermatology, ophthalmology, and onco-dermatology and accounts for over 16 per cent of company sales. The company’s vertically integrated operations deliver high-quality medicines, trusted by physicians and consumers in over 100 countries. Its manufacturing facilities are spread across six continents. Sun Pharma is proud of its multi-cultural workforce drawn from over 50 nations.
Source: https://today.thefinancialexpress.com.bd/trade-market/sun-pharma-opens-new-plant-in-bd-1716652491
SME fair sees Tk 130m sales
Entrepreneurs have bagged purchase orders worth Tk 200 million and sold merchandise for approximately Tk 130 million as the weeklong SME Fair 2024 concluded on Saturday. Besides, around one thousand micro, small and medium entrepreneurs submitted loan applications to the banks and non-bank financial institutions after participating in the major event held at the Bangabandhu International Conference Center in Agargaon area of the city. Around 350 SMEs, including a significant number of women entrepreneurs, took part in the fair to showcase and sell their goods. About 25 banks and financial institutions disbursing SME loans joined the fair.
Source: https://today.thefinancialexpress.com.bd/trade-market/sme-fair-sees-tk-130m-sales-1716652347
