Metro Spinning Doubles Production Capacity

The council of advisers has directed the finance ministry to take steps to recover funds deposited by various ministries with banks. The finance ministry is tasked with requesting the Bangladesh Bank to engage with banks to retrieve these deposits. A loan of Tk 790 million is being arranged to help a major RMG owner pay workers' salaries amid ongoing labor unrest. The unrest has led to a 15-20% decline in work orders, with some countries allegedly benefiting. A platform known as the Bekar Sramik Shanggha has contributed to the unrest and vandalism.

Controversies surrounding the Adani power deal have resurfaced, but less attention has been given to the SS Power plant, owned by a private Bangladeshi group, despite its high costs. In FY 2023-24, SS Power's capacity was only utilized at 21%, yet it incurred a Tk 3,288 crore capacity charge. Ramphal Power Plant, with 24% utilization, faced a Tk 2,237 crore charge. Other plants like Barishal Electric (30%), Payra (65%), and Adani’s (61%) also reported high capacity charges, with Adani costing Tk 5,392 crore. Overall, five coal-based plants incurred Tk 15,686 crore in capacity charges.

The Bangladesh Bank is introducing special liquidity support for banks weakened by irregularities and corruption, following a change in their boards. These banks will receive liquidity assistance against guarantees from the central bank, with stronger banks providing the liquidity. Previously, the central bank printed money to sustain banks, but it has now moved away from this approach, focusing on liquidity support through finalized policies. The central bank plans to provide assistance this week, with support based on specific indicators.

Four days before the fall of the government, Bangladesh Bank granted a two-year loan repayment extension to the Bashundhara Group for its debt with National Bank. As of August 31, Bashundhara's loan with National Bank amounted to BDT 3,844 crore, surpassing the legal limit by eight times. The central bank allowed this extension despite their policy typically restricting such extensions to one year. The loan was already BDT 3,859 crore, with direct loans at BDT 3,844 crore. The extension was requested in April and approved in July, right before the government’s collapse on August 5.

Bangladesh's first Exchange Traded Fund (ETF), the LB Multi Asset Income ETF, has failed to meet its mandatory Tk50 crore private subscription target by its second extended deadline of 3 September. LankaBangla Asset Management, the fund's asset manager, has requested a six-month extension from the Bangladesh Securities and Exchange Commission (BSEC), pushing the deadline to 3 March next year.

Customs-related irregularities have been uncovered in Bangladesh's power imports from India's Adani Group, with officials bending legal procedures to evade significant taxes.  Since April 2022, Bangladesh has imported power from Adani's 1,600MW coal-fired plant in Jharkhand without obtaining necessary tax-exemption orders. No bill of entry has been submitted to customs for these imports, raising concerns. An independent body has been formed to scrutinize the power deal following allegations of inflated tariffs.