Bangladesh Bank Cuts Liquidity Support for Nine Troubled Banks

Bangladesh Bank (BB) has introduced guidelines to enhance transparency and accountability for Joint Ventures, Consortiums, or Associations (JV/CA) involving foreign partners operating in Bangladesh.

BRAC Bank has reached a significant milestone by achieving a net deposit growth of Tk 10,000 crore within the first ten months of 2024, covering the period from January to October. Despite the challenging economic landscape, the bank's strong market presence and customer trust have driven this impressive achievement.

Dhaka Bank PLC signed a memorandum of understanding (MoU) with Dhaka South City Corporation (DSCC) on November 22 to streamline the collection of holding tax and trade licence fees. Under the agreement, the bank will integrate with DSCC servers via API connectivity, enabling residents to pay taxes and fees at designated branches, sub-branches, and five newly established collection booths at Nagar Bhaban and zonal offices during the first phase.

The interim government of Bangladesh has extended a 20% cash incentive to juice and drink exports made from locally sourced fruit pulp, aiming to promote agro-processing industries and rural entrepreneurship. Bangladesh Bank issued a circular on November 21, highlighting that firms collaborating with exporters to source local fruit pulp are also eligible.

Moody's downgraded Bangladesh's sovereign rating from B1 to B2, shifting its outlook to negative, citing heightened political risks and potential economic slowdown. However, Bangladesh Bank (BB) criticized the downgrade, labeling it as retrospective and not reflective of current progress.

Islami Bank has announced plans to raise Tk 20,000 crore, including Tk 10,000 crore from selling S Alam Group's stake and the rest through new share issuance. Questions loom over the feasibility of this target, given the financial sector's fragility and political uncertainties. Market calculations suggest that even if S Alam's alleged 80% stake—valued at Tk 6,700 crore—is sold, achieving Tk 10,000 crore would require doubling the market price.