Bizdata Insights Main Logo

BizData Insights

NBFIs Face Profit Decline as Interest Rate Gap Narrows

Industry: Financial, NBFI

Non-bank financial institutions (NBFIs) in Bangladesh experienced a significant decrease in profits during the January-March quarter compared to 2022, largely due to the shrinking gap between borrowing and lending rates. The diminishing deposits in banks and financial institutions, coupled with inflation and economic distress, led weaker banks to offer higher deposit rates, attracting institutional investors away from NBFIs. In order to stay competitive, some NBFIs raised their rates, but the maximum lending rate remained at 11%. Consequently, the interest spread for NBFIs decreased, impacting their earnings. The profit of nine NBFIs dropped between 16% and 99% year-on-year, while the interest spread for NBFIs as a whole reached a historical low of 0.44% in April. Additionally, widespread scams and irregularities within certain NBFIs have further deteriorated their financial conditions, with a surge in non-performing loans reaching 24.61% in September 2022.

Source for more details:

Related News

Cash Transaction Increased by 8% in FY’22-23

February 24, 2024

The Bangladesh Financial Intelligence Unit (BFIU) reports a significant rise in cash transactions, reaching Tk 22,86,208 crore in FY 2022-23, marking an 8% increase from the previous year's Tk 21,90,107 crore. Despite ongoing efforts to promote digital payments, cash remains popular, representing 80% of transactions, with entity accounts being the primary conduit.

Eastern Bank and Daytona Forge Partnership for Remittance Services

February 22, 2024

Eastern Bank and Daytona Capital Management Ltd have formed a remittance service partnership, enabling money transfers through Hello Paisa, a renowned remittance brand of Daytona based in the UK. The agreement was signed at Eastern Bank's Gulshan head office. This collaboration aims to improve the efficiency and accessibility of remittance services for global Bangladeshi expatriates.

Crystal Insurance’s Profit Jumped by 12%

February 22, 2024

In 2023, Crystal Insurance Company Ltd reported a 12% increase in profit, reaching Tk 12.2 crore from Tk 10.88 crore the previous year. This led to a rise in earnings per share from Tk 2.72 to Tk 3.05, as per Dhaka Stock Exchange filings. However, the net operating cash flow per share experienced a significant decline of 71.38%, dropping from Tk 6.08 in 2022 to Tk 1.74 in 2023.

Standard Chartered Partnered with Berger Paints

February 22, 2024

Standard Chartered Bangladesh has partnered with Berger Paints Bangladesh Limited to automate local payments using the Host-to-Host solution (H2H). This agreement allows Berger Paints to process domestic payments directly from their ERP system, eliminating manual intervention. Standard Chartered, pioneering H2H integration in Bangladesh, supports the country's largest paint manufacturer on its cashless journey.

BRAC Bank launches Tk700 Crore Bond

February 22, 2024

BRAC Bank has introduced a Tk700 crore subordinated bond to bolster its Tier II Capital base, now open for subscription to investors. The move aims to support the bank's capital adequacy needs following substantial balance sheet growth. Investors, both individuals and institutions, can participate with a minimum investment of Tk10 lakh. The bank highlights the safety and security of this investment, being issued by one of the country's strongest banks with top credit ratings.

MFS Transactions Surged by 30%

February 22, 2024

The mobile financial services (MFS) sector has experienced a remarkable four-fold growth in the last five years, surpassing Tk 4,100 crore by December 2023. Daily transactions averaged Tk 1,070 crore in December 2018, expanding due to the convenience of services like money transfers, bill payments, and online shopping.

Related News

Cash Transaction Increased by 8% in FY’22-23

February 24, 2024

The Bangladesh Financial Intelligence Unit (BFIU) reports a significant rise in cash transactions, reaching Tk 22,86,208 crore in FY 2022-23, marking an 8% increase from the previous year's Tk 21,90,107 crore. Despite ongoing efforts to promote digital payments, cash remains popular, representing 80% of transactions, with entity accounts being the primary conduit.

Eastern Bank and Daytona Forge Partnership for Remittance Services

February 22, 2024

Eastern Bank and Daytona Capital Management Ltd have formed a remittance service partnership, enabling money transfers through Hello Paisa, a renowned remittance brand of Daytona based in the UK. The agreement was signed at Eastern Bank's Gulshan head office. This collaboration aims to improve the efficiency and accessibility of remittance services for global Bangladeshi expatriates.

Crystal Insurance’s Profit Jumped by 12%

February 22, 2024

In 2023, Crystal Insurance Company Ltd reported a 12% increase in profit, reaching Tk 12.2 crore from Tk 10.88 crore the previous year. This led to a rise in earnings per share from Tk 2.72 to Tk 3.05, as per Dhaka Stock Exchange filings. However, the net operating cash flow per share experienced a significant decline of 71.38%, dropping from Tk 6.08 in 2022 to Tk 1.74 in 2023.

Standard Chartered Partnered with Berger Paints

February 22, 2024

Standard Chartered Bangladesh has partnered with Berger Paints Bangladesh Limited to automate local payments using the Host-to-Host solution (H2H). This agreement allows Berger Paints to process domestic payments directly from their ERP system, eliminating manual intervention. Standard Chartered, pioneering H2H integration in Bangladesh, supports the country's largest paint manufacturer on its cashless journey.

BRAC Bank launches Tk700 Crore Bond

February 22, 2024

BRAC Bank has introduced a Tk700 crore subordinated bond to bolster its Tier II Capital base, now open for subscription to investors. The move aims to support the bank's capital adequacy needs following substantial balance sheet growth. Investors, both individuals and institutions, can participate with a minimum investment of Tk10 lakh. The bank highlights the safety and security of this investment, being issued by one of the country's strongest banks with top credit ratings.

MFS Transactions Surged by 30%

February 22, 2024

The mobile financial services (MFS) sector has experienced a remarkable four-fold growth in the last five years, surpassing Tk 4,100 crore by December 2023. Daily transactions averaged Tk 1,070 crore in December 2018, expanding due to the convenience of services like money transfers, bill payments, and online shopping.

BUSINESSMONITOR

Connect with


Dont Have Account? Please register Here