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$2.40 Billion Remittance Received in September
Rtv News
01 Oct 2024, 19:29
Photo: Collected
In September, expatriates sent $2.40 billion in remittances to Bangladesh. Converted to local currency (at a rate of 120 BDT per USD), this amounts to approximately 28,856.40 crore BDT. On average, the country received $80.2 million per day during the month.
This information was revealed in an updated report from the Bangladesh Bank on Tuesday (October 1).
The report states that $2.40 billion in remittances were received in September, compared to $2.22 billion in August, indicating an increase in remittance inflow.
Key Highlights:
Total Remittance: $2.40 billion (approx. 28,856.40 crore BDT)
Daily Average: $80.2 million
Increase from August: Up from $2.22 billion in August
Previous Highs:
June: $2.53 billion
July: $1.91 billion (lowest in 10 months)
August: $2.22 billion
In September, $638.25 million was received through state-owned banks, $109.98 million through specialized banks, $1.65 billion through private banks, and $6.21 million through foreign commercial banks.
Additionally, between September 29 and 30, expatriates sent $291.68 million in remittances. Between September 22 and 28, the country received $478.89 million, while from September 15 to 21, $467.03 million in remittances were received. During the second week of September (September 8 to 14), the remittance inflow was $582.66 million, and in the first week, expatriates sent $584.54 million.
Earlier, in June, remittance inflows stood at $2.53 billion, while in the first month of the current fiscal year (July), remittances dropped to around $1.91 billion—the lowest in the past 10 months.
In August, remittances increased again, with expatriates sending $2.22 billion.
Bankers note that since the beginning of the new government, expatriates have reduced their use of informal remittance channels (like hundi) and are now sending remittances through official banking channels, even if they have to wait in line. This shift has led to a significant increase in the country's remittance earnings.
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A lot of garment manufacturing may move to India from Bangladesh
Raymond CMD Gautam Singhania expects a large chunk of garment manufacturing to move India in the coming years due to the political turmoil in Bangladesh and believes his company is ready to tap into the opportunity with the investment it had made to supply to global players.
"We sell fabrics to Bangladesh, all that business is coming back here after the crisis. Once the business shifts here, it won't go back.
They don't have a fabric base. You will succeed when you are integrated - we have fabric base and garment base (in India). Today, the ball has been thrown, we have to catch it," he said.
Raymond had invested around Rs 200 crore to expand its garment manufacturing capacity, which Singhania expects will come handy given that the company is already supplying to large buyers. "We are the third largest garment manufacturer in the world; we do 10 million pieces a year. Two Chinese players are bigger; they have higher volumes, but they sell cheaper stuff. Today, all the marquee customers are with us. For example, Hugo Boss, CK, Macy's, JCPenney. Out of Rs 7,000 crore (revenue), Rs 1,200 crore will come from there, 95% of that is exported," he said.
While Raymond is seeking to expand its portfolio with sleepwear, inner-wear, and bolstering Ethinix, Singhania ruled out a re-entry into womenswear. "It's as different for me (as it is) to make cement and steel. We did a market survey and it showed that the male took very strong objection to Raymond extending it to womenswear," he said.
Source: TOI
10 Banks Face Provision Shortfall of Over Tk 31,000cr
Ten banks, including six private commercial ones, had faced a provision shortfall of around Taka 31,549 crore in total at the end of June this year, as per the latest data of Bangladesh Bank (BB).
The banks are National Bank, BASIC Bank, Agrani Bank, Rupali Bank, Bangladesh Commerce Bank, Dhaka Bank, Standard Bank, Bangladesh Development Bank, IFIC Bank and Southeast Bank.
According to the policy, banks are required to maintain a provision of 0.50% to 5% of their deposits. However, provisioning requirements can range from 20% to 100% depending on the classification of default loans.
Central Bank data shows that the provision shortfall in the banking sector has risen by Tk 4,963 crore between April and June. As of the end of March this year, the sector's provision shortfall stood at Tk 26,586 crore.
According to the Bangladesh Bank report, default loans in the banking sector reached Tk 2,11,391 crore, or 12.56% of the total loans, by the end of June.
During the June quarter (April-June), classified loans rose by Tk 29,096 crore from Tk 182,295 crore as of March 30.
The BB data shows that state-owned commercial banks hold the largest share of the classified loans (Tk 1,02,483 crore or 32.77 percent) followed by specialized banks (Tk 5,756 crore or 13.11 percent), private commercial banks (Tk 99,921 crore or 7.94 percent), and foreign commercial banks (Tk 3,229 crore or 4.74 percent).
Source: BSS
No Harm to Depositors as Deposit Insurance Doubles: Governor Mansur
Bangladesh Bank Governor Dr. Ahsan H. Mansur has assured depositors that their savings are secure, even as several banks struggle with financial challenges.
During a press conference on Sunday, September 8, the governor acknowledged that approximately 10 banks in the country are facing serious difficulties but stressed the need to restore customer confidence by protecting 95% of depositors.
Highlights:
Deposit Insurance Increase: The deposit insurance has been doubled from Tk 1 lakh to Tk 2 lakh.
Depositor Protection: The new insurance scheme ensures protection for 95% of depositors.
Banks Facing Challenges: Approximately 10 banks in the country are facing serious financial difficulties.
Available Fund: Bangladesh Bank has a fund of Tk 25,000 crore, mainly to support the SME sector.
"No matter the condition of the banking sector, depositors will not be harmed," Dr. Mansur said. "To safeguard them, the deposit insurance has been doubled from Tk 1 lakh to Tk 2 lakh, ensuring the protection of 95% of customers. No country offers 100% protection for deposits, but we are providing 95%."
He further noted that Bangladesh Bank has a Tk 25,000 crore fund available for banks, primarily to support the SME sector. Banks have been asked to submit written requests to access these funds.
Additionally, Dr. Mansur clarified that no bank accounts belonging to Beximco or S Alam Group have been seized, and the operations of these companies will continue as usual.
Bangladesh Bank Appointed Two Deputy Governors
Bangladesh Bank has appointed its executive directors Md Zakir Hossain Chowdhury and Md Kabir Ahmed as the deputy governors on a contractual basis for three years from the joining date.
The Financial Institutions Division of the Finance Ministry issued a notification to this end on Sunday (September 8).
The order was issued in the public interest.
Earlier, the central bank's two deputy governors, Kazi Saidur Rahman and Khurshid Alam stepped down following the fall of Hasina government in a mass uprising on August 5.
Instability in garment industry to embarrass govt: BKMEA
Attempts are being made to destabilize the garment industry to embarrass the interim government.
For this, there is a plot to hand over this industry to other countries. Such is the demand of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the apex organization of knit industry owners.
In this situation, economists advise to stop the conspiracy for their own interests and focus on the work of the workers.
It is only a month since the interim government came to power. Meanwhile, the garment industry areas of Savar, Ashulia, Gazipur, and Narayanganj became unstable towards last month.
BKMEA, the top association of knitwear industry owners, says that the unrest is being created to destroy the garment industry in Bangladesh.
The president of the organization Mohammad Hatem assured to accept the logical demands of the workers on the negotiation table and not on the streets. He said that BKMEA always stands by the fair demands of the workers. All problems will be solved.
Economists say that if the conspiracy is implemented, the workers will be in trouble. So they have to stand against the evil forces. Economist Mahfuz Kabir said, that if workers are not aware of the future of employment and investment in their industry, then this sector will be at risk. So we have to be aware of ourselves without stepping on anyone's provocation.
Meanwhile, The workers' tiffin bill and attendance bonus were increased through negotiations in the face of their demands on Monday (September 9).
Calls to Reopen All Garments to Safeguard Economy
The interim government led by Nobel Prize-winning economist Dr. Muhammad Yunus is facing a significant challenge due to ongoing labor unrest in various industries, including the ready-made garment sector.
Workers, frustrated by issues such as wages and benefits, have been staging daily protests, halting production as they take to the streets. In key industrial zones like Ashulia in Savar and Gazipur, hundreds of factories shut down regularly, with some reports even indicating instances of vandalism in certain factories.
219 factories have been reported to be closed in Ashulia today, Thursday (September 12).
In this situation, to protect the country's economy, the workers, owners, and the government have called for the quick opening of the closed garment factories. Hafizur Rahman, the administrator of Bangladesh Chambers of Commerce and Industry (FBCCI), the top organization of businessmen, made this call.
On Thursday (September 12), he joined as administrator of the organization at Capital's Motijheel Chamber building and made this call.
Hafizur Rahman said many garment factories are closed due to worker dissatisfaction. To sustain the country's economy, these closed garment factories must be opened quickly. A joint initiative of workers, employers, and government is required in this regard.
At that time, the businessmen complained to the newly appointed administrator that government agents were always appointed to the FBCCI board. They took advantage. There are about 2,000 members in the General Assembly and 400 members in the Chamber Group. General Board members did not see their pros and cons. Big traders used to get various benefits, while small traders were deprived.
The businessmen demanded reforms in all discriminatory matters including the cancellation of the auto director system, demanding the election of the president and directors by direct vote of the general assembly.
In response, the administrator expressed his commitment to hand over the responsibility of FBCCI to the elected representatives through fair and acceptable voting within the stipulated time. He said, "Businessmen are the life of the country's economy. I will try to organize the election within the stipulated time. For this, we want everyone's cooperation, so that we can quickly hand over the responsibility to the elected representatives."
Meanwhile, among 219 factories closed in Savar's Ashulia industrial zone, 86 factories have remained closed indefinitely due to labor unrest and unstable situation. However, on Wednesday (September 11), after the call of various local political parties and BGMEA leaders, it was decided that all factories would be opened.
Experts say that nearly 4 million workers are directly engaged in the country's garment industry. At least two crore people are indirectly benefited. If this industry is in danger, a large population will be in danger, and the country's economy will be extremely damaged.
Govt Announces Review of Minimum Wage for Workers
The interim government resolved that to restore industry regularity, the Government will examine worker wages through the minimum wage board.
Following a meeting at the ministry with seven advisors, AHM Shafiquzzaman, secretary to the Ministry of Labour and Employment, announced that the door will be open for debate on wage review for workers through the minimum wage board. Now a new Government is in charge.
Tripartite consultation meetings involving the government, factory owners, and labor unions will be called to discuss the wage, the secretary told the local media.
Although the current minimum salary went into force in December of last year, officials stated that the interim administration will examine the minimum pay in light of inflation and rising costs for necessities.
The Government also decided to take action to ensure that workers receive their arrears payments as soon as possible and to enhance communication between workers and representatives of the Department of Inspection for Factories and Establishments and the Ministry of Labor Advisor Asif Mahmud Shojib Bhuiyan, who chaired the meeting on Wednesday (September 11).
The meeting also decided on updating and reforming the tripartite committee, making the labor-related complaint committees functional, and holding hearings on the complaints.
Labor unrest will be addressed as soon as possible through measures based on the information collected daily. The interim Government's advisors also resolved to lend Beximco money as quickly as possible to compensate its employees. According to Shafiquzzaman, Beximco has so far received a loan of Taka 70 crore so that it may pay the employees.
Some factories also laid off their workers amid the crisis.
