NBFIs Face Profit Decline as Interest Rate Gap Narrows

Investments made by full-fledged Islamic banks in Bangladesh have surged nearly nine times their deposits within a year, raising concerns about the overall health of the banking sector. Official figures show that these banks experienced a significant increase in loans, totaling Tk 46,011 crore, in the first quarter of 2023 compared to the same period in 2022.

In the maiden post-budget session, the Dhaka Stock Exchange (DSE) witnessed a significant surge in turnover, exceeding Tk 12 billion for the first time in seven months. The market's positive performance can be attributed to the absence of any new tax provisions or cuts to existing tax facilities in the proposed budget for FY24.

The Bangladesh Bank has issued a notice stating that all licensed money changers in the country must become members of their relevant trade association by June 30, 2023. The central bank believes that this requirement will help streamline the operations of the money changing business.

Bank Asia Limited partners with Grameenphone to expand financial inclusion. Bank Asia Limited has entered into an agreement with Grameenphone to designate the mobile phone operator's retailers as micro-merchants for the bank. This collaboration aims to bring banking services to the doorstep of grassroots communities and support Bangladesh's goal of becoming a cashless economy.

Dhaka Bank Limited has entered into an agreement with PricewaterhouseCoopers (PwC) Bangladesh Private Limited for a Quality Assurance Review of its Internal Audit Functions. The engagement letter was signed by the Managing Director of PwC Bangladesh and the Managing Director & CEO of Dhaka Bank Limited.

Mercantile Bank Limited has introduced a global debit card service for its customers, marking the 24th anniversary of its operations. The bank's chairman highlighted the bank's achievements and emphasized future action plans, acknowledging the challenges posed by the Covid-19 pandemic and the Ukraine-Russia war.