Foreign Currency Crisis Eases in Banking Sector

The securities regulator has requested Lankan Alliance Finance Limited to resubmit its application for an initial public offering (IPO) due to an increase in the number of shares issued as stock dividends after the initial application.

In the upcoming budget for the fiscal year 2023-24, the government plans to set aside Tk 1,000 crore to address the capital shortfall of state-owned commercial banks, even though no funds have been released for them in the past four fiscal years. The allocation is part of the recapitalization fund, intended to support the banks, but the finance ministry has not provided financing for them since FY19-20.

Premier Cement PLC has signed an agreement with Infrastructure Development Company Limited (Idcol) to receive a Tk 350 crore long-term loan for expanding production at two new units. The company has already commenced production at the Narayanganj and Chattogram units, involving a total investment of Tk 1,300 crore.

The Insurance Development and Regulatory Authority (IDRA) has authorized life insurance companies in Bangladesh to provide comprehensive health insurance policies, breaking the monopoly held by non-life insurers. In a recent circular, IDRA formalized this decision, opening up opportunities for market competition and potentially reducing policy costs. Previously, only non-life insurers were permitted to offer health insurance policies with short-term durations. However, with the latest circular, life insurers are now allowed to design, price, and sell medical products in the market.

Mercantile Bank Ltd aims to fuel its growth in the coming years by prioritizing enhanced customer service, operational efficiency, robust risk management, and continued digital transformation according to the bank's Managing Director and CEO.

The Bangladeshi government is planning to decrease loan guarantees for state-owned enterprises (SOEs) in an effort to boost their capacity and reduce the external debt burden. Under the new measures, loan guarantees will only be provided for essential projects in the public interest.