Written-Off Loan Recovery Declines by 24%

In a recent press conference, Bangladesh Bank Executive Director and Spokesperson Husnay Ara Shikha urged depositors to avoid unnecessary withdrawals, assuring them that their funds remain safe. She highlighted that no bank globally could provide funds if all depositors withdrew at once. Some banks, especially those controlled by the controversial S Alam Group, are struggling to repay depositors due to the withdrawal rush.

Four members of Bangladesh’s Insurance Development and Regulatory Authority (IDRA) are set to resign following a directive from the interim government, marking another significant shift since the recent change in administration. The members—Quamrul Hasan (life insurance), Md Nazrul Islam (non-life insurance), Md Dalil Uddin (law), and Biswajit Bhattacharya Khokon (administration)—will attend a farewell ceremony tomorrow, according to an IDRA official.

In a bid to ensure a steady supply of essential food items during Ramadan, Bangladesh Bank (BB) has relaxed the rules for importing key commodities. A circular issued on November 6 allows banks to open Letters of Credit (LCs) for items like rice, wheat, onion, pulses, edible oil, sugar, eggs, chickpeas, spices, and dates, based on their relationship with clients.

By the end of September, cash outside the banking system decreased from Tk 2.92 lakh crore to Tk 2.83 lakh crore, signaling a return of public trust in the banking sector after a period of political instability. In September, nearly Tk 9,000 crore was deposited back into banks, contributing to a 7.26% growth in deposits, reaching Tk 17.41 lakh crore.

Linde Bangladesh reported a dramatic profit increase of 264 times in the third quarter of 2024, primarily due to the sale of its welding business, earning Tk 7.72 billion despite an operational loss of Tk 267 million. Although revenue rose 3% to Tk 1.68 billion, this did not translate into operational profits, with costs surging 228% to Tk 430 million due to retirement benefits paid post-sale.