Pragati Life and GDHS Partner for Digital Insurance

Moody’s Ratings has downgraded Bangladesh’s banking system outlook from "stable" to "negative," citing increasing asset risks and worsening economic conditions. The report highlights concerns such as deteriorating asset quality, high inflation, and weakening economic growth, which will negatively impact bank profitability and financial stability. Structural risks, including lax regulations and poor corporate governance, remain persistent.

Ratna Patra, vice chairman and sponsor of Square Pharmaceuticals, announced her plan to purchase 15 lakh shares worth approximately Tk 33 crore at the current market price. The purchase will take place within the next 30 working days through both public and block markets on the Dhaka Stock Exchange (DSE).

The National Board of Revenue (NBR) has exempted the advance tax (AT) on the import of raw materials for cancer drug manufacturing, aiming to reduce production costs and drug prices. Previously, a 5% AT was imposed, but it has now been reduced to 2% or eliminated altogether.

Bangladesh Bank has decided to discontinue the Assured Liquidity Support (ALS) facility for primary dealer (PD) banks, citing the absence of devolvement in government securities (G-Sec) auctions for over three financial years. Introduced in 2008 to help PD banks meet their underwriting obligations, the ALS allowed them to access liquidity at the repo rate (currently 10%).

Bangladesh Bank has eased down payment requirements for exit facilities on defaulted loans of closed or loss-making companies, reducing the minimum payment from 10% to 5% of the outstanding loan balance. Additionally, the loan threshold for management-approved exit facilities has been raised from Tk10 lakh to Tk20 lakh, while higher amounts will require board approval.

Government borrowing from commercial banks has surged by 74% in the current fiscal year as private sector credit growth remains low and authorities aim to reduce central bank debt under a contractionary monetary policy. Between July and 20 February, the government borrowed Tk78,832 crore through Treasury bills and bonds, compared to Tk45,231 crore in the same period last year.