MBPLC.

Spectrum VOLUME – 33
Monthly Online Bulletin
Research and Planning Division
Mercantile Bank PLC.
Head Office, Dhaka.
FEBRUARY 2024
 CONTENTS

EDITORIAL 05 12

CHAIRMAN
Md. Quamrul Islam Chowdhury
Managing Director & CEO

CO-CHAIRMAN
Mati ul Hasan
Additional Managing Director & CRO

MEMBERS
Md. Mukitul Kabir, VP
Farhana Hosain, VP
20 29
Ujjal Kanti Dey, FCA, FVP
Mohammed Tariqul Islam, AVP
Elma Jahan, CAMS, FAVP 03 Editor’s Note 20 Banking Industry
Saifur Rahman, CAMS, CDCS, FAVP
04 MBPLC. Performance 29 MBPLC. News
Mohammad Rakibul Hasan, CAMS, FAVP February 2024
Sammo Adhikary, PO 34 Bangladesh Bank Circular
Md. Nazmul Alam, PO 05 Global Economy February 2024
Kaniz Farzana, ACCA, Officer
12 Bangladesh Economy 35 MBPLC. Circular
February 2024
CHIEF EDITOR
Tapash Chandra Paul, PhD
Chief Financial Officer
 EDITOR’S

DITOR’S
NOTE
In the heart of winter, February stands as a beacon of national pride for
Bangladesh, marking the solemn observance of the 1952 Language
Movement. This time honors the valor of those who championed the
Bengali language, leading to the global recognition of International Mother
Language Day on February 21st. The historic struggle affirmed linguistic
rights and planted the seeds of sovereignty, culminating in Bangladesh’s
independence in 1971.

Amidst a recent slowdown, global economic growth is set to continue,

as indicated by high-frequency activity indicators. India is noted as the
sole major economy with robust near-term momentum, contrasting with
modest growth in other key economies and relative sluggishness in Europe.
The OECD economic outlook forecasts a dip in growth to 2.9% in 2024,
followed by a slight increase to 3.0% in 2025.

Bangladesh’s economy is on an upward trajectory, seizing opportunities and

overcoming challenges. The nation’s inflation rate is projected to fall from
an estimated 9.6% in 2023 to 6.8% in 2024, according to UN estimates.
In the first 50 days of the current year, Bangladesh’s export earnings have
surged by 14% to $6.70 billion, reversing the downturn experienced in the
final quarter of the preceding year.

Bangladesh Bank has launched several measures to sustain the vitality of

the banking industry. The introduction of a currency swap policy is a first for
the nation, aimed at replenishing foreign exchange reserves. A reduction
in the lending rate margin by 25 basis points has been implemented to
stabilize loan interest rates.

As per Bangladesh Bank regulations, individuals must be at least 30 years

old to serve as a bank director and 45 years old to assume the role of
managing director or CEO. The Central Bank has also advocated for the
adoption of the government’s Universal Pension Scheme by financial
institutions for their employees.

Spectrum, MBPLC’s monthly publication, offers insights on a diverse array

of topics and presents an overview of Mercantile Bank’s financial health up
to February. We invite you to share your valuable feedback with us.

Tapash Chandra Paul, PhD

Chief Financial Officer
Email: tapchpaul@[Link]

MBPLC. SPECTRUM 3
 MBPLC. PERFORMANCE Deposits BDT in Crore
31,641.85 31,397.64
Loans & Advances BDT in Crore
28,483.01 28,061.03

YTD Dec 2023 YTD Feb 2024 YTD Dec 2023 YTD Feb 2024

Import BDT in Crore Export BDT in Crore

4,103.12
3,027.61
2,704.95
2,951.10
MBPLC. PERFORMANCE

YTD Feb 2023 YTD Feb 2024 YTD Feb 2023 YTD Feb 2024

Inward Remittance BDT in Crore Cost of Deposit

1,605.27

5.44%
5.05% 5.19% 5.18% 5.18%

553.87

YTD Feb 2023 YTD Feb 2024 Feb-23 June-23 Sept-23 Dec-23 Feb-24
FEBRUARY 2024

Yield on Advances Spread

7.02%
6.73% 6.68% 6.81% 1.68%
6.67% 1.48% 1.50% 1.63% 1.58%

Feb-23 June-23 Sept-23 Dec-23 Feb-24 Jan-23 June-23 Sept-23 Dec-23 Jan-24

MBPLC. SPECTRUM 4
 GLOBAL
ECONOMY
Strengthening the foundations for growth
Global growth proved surprisingly absence of further adverse supply particularly in relation to the
resilient in 2023, with lower shocks, cooling demand pressures ongoing conflict in the Middle East.
energy prices and fading should allow headline and core Further upside surprises in inflation
supply chain pressures helping inflation to fall further in most
could trigger sharp corrections in
inflation to decline more quickly economies. By the end of 2025
than anticipated. However, inflation is projected to be back financial asset prices as markets
recent indicators point to some to target in most G20 countries. price in that policy rates may be
moderation of growth. In the Geopolitical risks remain high, higher for longer periods of time.

3.0% 6.6% 3.8%

Projected global GDP growth Projected G20 headline Projected G20 headline
for 2025 inflation in 2024 inflation in 2025

Growth Outlook: Resilient but Slow

Both headline and core inflation vulnerable to geopolitics, extreme compatible with medium-term
fell during 2023. Some of the weather or unpredictable events. inflation objectives, it is too soon
factors assisting disinflation over With inflation still above target,
the past year are now dissipating and unit labour cost growth to confirm whether the inflationary
or reversing, while others are generally remaining above levels episode that began in 2021 is over.

MBPLC. SPECTRUM 5
Headline Inflation
%, year-on-year

G20 Euro area United States Japan Select economies

Projection period
8%

6%

4%
G20

Euro area
2% Japan
United States

0%

2019 2020 2021 2022 2023 2024 2025

Source: OECD Economic Outlook, Interim Report February 2024.

Recent activity indicators point to continued moderate global growth

High-frequency activity indicators near-term momentum continue in growth, which rose by an estimated
generally suggest a continuation India, relative weakness in Europe, 3.1% in 2023, is projected to slow
of recent moderate growth. Across and mild near-term growth in most to 2.9% in 2024 and then increase
countries, clear signs of strong other major economies. Global to 3.0% in 2025.

GDP growth projections for 2024 and 2025 %, year-on-year

G20economies OECD countries 2024 2025

India 6.2% 6.5%

Indonesia 5.1% 5.2%
China 4.7% 4.2%
Turkiye 2.9% 3.1%
G20 2.9% 3.0%
World 2.9% 3.0%
Mexico 2.5% 2.0%
Saudi Arabia 2.4% 4.2%
Korea 2.2% 2.1%
United States 2.1% 1.7%
Brazil 1.8% 2.0%
Russia 1.8% 1.0%
Spain 1.5% 2.0%
Australia 1.4% 2.1%
Japan 1.0% 1.0%
South Africa 1.0% 1.2%
Canada 0.9% 1.9%
Italy 0.7% 1.2%
United Kingdom 0.7% 1.2%
Euro area 17 0.6% 1.3%
France 0.6% 1.2%
Germany 0.3% 1.1%
Argentina -2.3% 2.6%

Source: OECD Economic Outlook, Interim Report February 2024.

MBPLC. SPECTRUM 6
Fiscal policy needs to get smarter

Government spending needs falling, just as the skills needs of in wartime. Governments need
to focus more on investment in the future economy are rising. to adopt sustainable fiscal plans
the areas that drive sustainable Public debt levels are generally
that balance intergenerational
growth. Especially human capital. higher than before the pandemic,
Recent OECD PISA scores and in many countries at levels needs and prepare economies
show educational outcomes are relative to GDP seen before only for the future.

Public debt ratio for 2007-Q4 and 2023-Q3, or latest available

% of GDP
2007-Q4 2023-Q3
250%

200%

150%

100%

50%

0%
Japan

Italy

United States

OECD

France

Spain

Canada

Argentina

Brazil

India

China

South Africa

Germany

Australia

Korea

Mexico

Indonesia

Türkiye

Russia
United Kingdom

The chart shows general government financial liabilities for AUS, CAN, JPN, KOR and USA, and general government gross debt in % of GDP
(Maastricht definition for euro area countries).
Source: OECD Economic Outlook, Interim Report February 2024.

The foundations for future markets that impede investment towards decarbonisation, and
growth need to be strengthened and labour force participation. alleviate debt burdens in lower-
by policy reforms to improve Enhanced international co-
income countries.
educational outcomes, enhance operation is needed to revive
skills development, and reduce global trade, ensure faster and Ref : [Link]
constraints in labour and product better co-ordinated progress outlook/february-2024

US says falling trade with China could be positive

collect personal data or be
controlled remotely.

Chinese car companies have been

expanding their presence in other
parts of the world but have virtually
no presence in the US, where they
already face import duties of 25%.
The White House described its
action as “unprecedented” and a fair
response to Chinese policies which
impose restrictions on foreign car
companies. Last year the amount of
goods the US bought from China
The amount of goods the announcing an investigation
world’s two biggest economies into what it said was a potential fell just over 20% to $427bn, with a
sold to each other fell 17% last national security risk from cars 4% fall the other way to just under
year. Those differences were made in China, citing fears that $148bn (£117bn).
exposed again with the US tech-connected cars could Ref: [Link]

MBPLC. SPECTRUM 7
India economy beats expectations with 8.4% growth
India has retained its title of the
world’s fastest growing major
economy as it expanded 8.4%
in the last three months of 2023,
from a year earlier. The data
comes as the country is set to hold
a general election this year. Prime
Minister Narendra Modi posted
on the social media platform X,
formerly Twitter, that it shows “the
strength of Indian economy and
its potential”.
India is forecast to overtake Japan
and Germany as the world’s third
biggest economy in the next few expanding by 11.6% in the period. International Monetary Fund (IMF)
years. The better-than-expected Private consumption, which expects India’s economy to expand
growth was led by a strong makes up almost two-thirds of the by 6.5% in 2024, compared with
performance by the country’s country’s gross domestic product 4.6% for China.
manufacturers, with the sector (GDP), also rose by 3.5%. The Ref: [Link]

Pressure grows on China for big policy moves

to fix economy

As the annual meeting of China’s unseen since the global financial is a crucial year for China to stabilise
parliament approaches next month, crisis, prompting comparisons the economy. China overcame the
its leaders are facing the greatest with the 2015 turmoil that forced 2015 crisis by devaluing the yuan
pressure in almost a decade to take policymakers into action. and tightening its capital account
bold policy decisions that safeguard
“The last time the Chinese to prevent outflows, while pouring
the economy’s long-term growth
potential. The start of the year saw leadership faced this kind of resources into property and
Chinese stocks tumbling to five- pressure was in 2015,” said Tommy infrastructure, and slashing interest
year lows on growth concerns Wu, a senior China economist at rates by more than 100 basis points.
and deflation deepening to levels Commerzbank, who added, “2024 Ref: [Link]

MBPLC. SPECTRUM 8
German economy in stormy waters as government
slashes forecast
The German government expects
the economy to grow 0.2 percent
this year, far less than a previously
forecast 1.3 percent, as weak global
demand, geopolitical uncertainty
and persistently high inflation dent
hopes for a swift rebound. The
revised forecast was approved
by the cabinet as part of the
government’s annual economic
report, government sources said.
Economy Minister Robert Habeck
is scheduled to give details later in
the day.
Europe’s largest economy shrank
by 0.3 percent in 2023 and is
broadly expected to enter another would hit just 0.7 percent in 2024. location, as the government tries to
technical recession in the first The next official update is due in reconcile its strict fiscal rules with
quarter of this year. The November mid-May. The gloomy outlook for the need to attract investment and
forecast of the council of advisers to Germany comes amid concerns help fund a costly green transition.
the government estimated growth over its status as an industry Ref: [Link]

Canada’s slowing inflation rate bolsters bets on early

rate cut
cut in April to 58 percent from
33 percent before the figures
were published.

The Bank of Canada’s next

policy announcement is March
6. Analysts polled by Reuters
had forecast inflation to tick
down to 3.3 per cent from 3.4
per cent in December. Month-
over-month, the consumer
price index was unchanged,
compared with a forecast of
a 0.4 per cent rise. Two of the
Bank of Canada’s (BoC) three
core measures of underlying
inflation also edged down. CPI-
Canada’s annual inflation forward bets for an early interest
median slowed to 3.3 per cent,
rate slowed significantly more rate cut. It was the first time in
lowest since November 2021,
than expected to 2.9 percent seven months that headline
while CPI-trim decreased to 3.4
in January and core price inflation has dipped below 3
per cent, lowest since July 2021.
measures also eased, data percent. That prompted money
showed on 19 February, bringing markets to hike bets for a rate Ref: [Link]

MBPLC. SPECTRUM 9
UK economy falls into recession, adding to Sunak’s
election challenge
Britain’s economy fell into a
recession in the second half of
2023, a tough backdrop ahead
of this year’s expected election for
Prime Minister Rishi Sunak who has
promised to boost growth.
Gross domestic product (GDP)
contracted by 0.3 per cent in
the three months to December,
having shrunk by 0.1 per cent
between July and September,
official data showed. The fourth-
quarter contraction was deeper
than all economists’ estimates in
a Reuters poll, which had pointed
to a 0.1 per cent decline. Sterling
weakened against the dollar and
the euro. Investors added to their from the government in a budget before the COVID-19 pandemic
bets on the Bank of England (BoE) plan due on March 6. Britain’s struck - with only Germany among
cutting interest rates this year and economy stands just 1 per cent the G7 countries faring worse.
businesses called for more help higher than its level of late 2019, Ref: [Link]

Japan’s growth stunted by lack of investment;

economy may fall behind India in 2026
hopes to keep up, it will have to
break out of its long deflationary
period and work to boost
production efficiency.
Chief Cabinet Secretary Yoshimasa
Hayashi offered his explanation
for why Japan’s nominal GDP
fell to fourth place. “Companies
suppressed wages and investment,
which is the source of growth, so
they could protect current profits.
As a result, consumption stagnated.
Prices were low and there was not
much growth,” he said. Japan
surpassed West Germany in gross
national product and became the
second largest economy after
the United States in 1968 during
Since the bursting of the bubble country’s nominal GDP has been a period of prosperity and rapid
economy Japan has failed to overtaken by Germany and fallen economic development.
invest in growth, and now the to fourth place globally. If Japan Ref: [Link]

MBPLC. SPECTRUM 10
Brent Crude Oil ($/barrel) West Texas Intermediate Crude Oil Price ($/barrel)
84 80

83 79

78
82
77
81
76
80
75
79
74

78 73

77 72
05 06 07 08 09 12 13 14 15 16 19 20 21 22 23 26 27 28 29 01 05 06 07 08 09 12 13 14 15 16 19 20 21 22 23 26 27 28 29 02
Mar Mar

Gold Price (USD/oz) Natural Gas (p/therm)

30 Day Gold Price in USD/oz
72
2100
70

2080 68

2060 66

64
2040
62
2020
60
2000 58
[Link]
1980 56
1 Feb 7 13 19 23 1 Mar 05 06 07 08 09 12 13 14 15 16 19 20 21 22 23 26 27 28 29 01
Mar

Graph: Global Economic Scenario

Sources:
1. [Link]
2. [Link]

MBPLC. SPECTRUM 11
 BANGLADESH
ECONOMY
Bangladesh Economy at a glance
Area 1,47,570 Sq. Km
Population (2022) 169.83 million
Population Density (2021) 1,153/Sq. Km
Population Growth Rate (2021) 1.3%
Total Labour Force (Labor Force Survey, 2022) 7.34 Crore
Incidence of Poverty (2022) 18.7%
Life Expectancy at Birth, 2021 72.3 Years
Literacy Rate (2021) 76.4%
Transportation – Total Road (Feb’2023) 22,476 Km.
Per Capital Income (2022-23) $2,763
Budget FY24 (Proposed) Tk 761,785 crore
Export Earning (July-Jan, FY24P) 33,264.71 Million US$
Import Earning (July-Dec, FY24P) 30,580.00 Million US$
Current Account Balance (Jul-Dec, FY24P) 1,927.00 Million US$
Capital Market (Share Price Index, as on end February 28, 2024)
DSE Broad Index (Base=100) 6,268.63
Chattogram Stock Exchange (Base=1000) 17,945.92

MBPLC. SPECTRUM 12
Key Indicators of Economy
Current national income aggregates
Percentage Change over
Items 2022-23P
previous year
GDP at current prices, in million Taka 4,43,92,733 11.77%
Per Capita GDP at current prices, in Taka 259,919 12.1%
GNI at current prices, in million Taka 4,61,85,291 11.85%
Per Capita GNI at current prices, in Taka 270,414 12.18%

Real GDP Growth Rate % Inflation Rate Annual Average

7.88 9.59
6.94 7.10
6.03 9.48
3.45 9.29

FY19 FY20 FY21 FY22 FY23 Sep, 2023 Dec, 2023 Jan, 2024

Reserve Money and Broad Money (TK. In Crore)

Percentage Change
Items Dec, 2022 Dec, 2023
Dec’23 over Dec’22
Reserve Money 380,011.70 372,315.60 -2.03%
Broad Money 17,57,968.70 19,09,147.70 8.60%

Wage Earners Remittance in Million US$ Foreign Exchange Reserve In Billion US$

2,101 32.27
25.77
1,959

Jan, 2023 Jan, 2024 Feb 28, 2023 Feb 28, 2024

Interbank TK.-USD Exchange Rate Call Money Rate (%)

110.0 9.33
6.16
105.5

Feb 28, 2023 Feb 28, 2024 Feb 28, 2023 Feb 28, 2024

Export (EPB) in Million US$ Classified Loan (%)

5,724 8.80 9.93 9.00
8.16
5,136

Jan, 2023 Jan, 2024 Dec, 2022 Mar, 2023 Sep, 2023 Dec, 2023

MBPLC. SPECTRUM 13
L/C Opening and Settlement In million US$ Tax Revenue (NBR) Tk. In crore
46,847 33,280
29,614
40,452 39,258 39,645

Opening Settlement
Jul-Jan, FY23 Jul-Jan, FY24 Dec, 2022 Dec, 2023

GDP growth slows to 13-year low, excluding

pandemic period
Bangladesh’s gross domestic
product grew 5.78 percent in
GDP Growth Rates Over the Years (%)
the last financial year, one of the
slowest paces of expansion in 13
8.15
years, as consumption nosedived, 7.86
according to the Bangladesh 7.11 7.28 7.1
6.94
Bureau of Statistics (BBS). The 6.55
6.06 5.78
service sector’s growth dropped
47 basis points to 5.37 percent in
the last financial year that ended
in June compared to the interim 3.45
estimation. It was 6.26 percent in
FY22. Agriculture GDP was up 76
basis points to 3.37 percent. The
industrial sector GDP rose 19 basis
points to 8.37 percent in FY23.
It was 9.86 percent in the final
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
estimate a year ago.
Source: BBS
(Ref: [Link]

Remittance rebound fetches $2.16b in Feb

(In billion US$)

1.97 2.10 2.16 BB Currency

1.60
1.97 1.93 1.99
Swap
1.33 BB Purchased
$728 million
from banks in
just four days
(February 20,
22, 26 and 27)
Jul 23 Aug 23 Sep 23 Oct 23 Nov 23 Dec 23 Jan 24 Feb 24

Gross Forex As per BB calculation As per IMF calculation

Reserves as $25.97 billion $20.78 billion
of Feb end
MBPLC. SPECTRUM 14
Remittance rebound fetched 40 per cent on a year-on-year has so far received $15.06 billion
US$2.16 billion in February- basis as the volume of foreign in the first eight months of the
the highest monthly receipt this currencies sent by migrant
fiscal-while Bangladesh strives workers in the same month last ongoing financial year (FY’24).
to buttress its depleting forex year amounted to $1.56 billion. The volume was 70 per cent of
reserves with foreign borrowings The country last recorded $2.19 last fiscal’s (FY’23) entire count of
and import curbs. Official data billion in remittance inflow in June
$21.60 billion.
showed in the February count last year, BB data showed. With
of remittances grew by around the latest receipt, the country (Ref: [Link]

Bangladesh Economic Association proposes 70% tax

on cigarettes, tobacco
According to the BEA’s proposal, single supplementary duty of 70%
imposing a single supplementary on all types of cigarettes would
duty of 70% on all types of increase the price of cigarettes by
cigarettes would increase the an average of 130%.
price of cigarettes by an average
of 130%. The Bangladesh Smoking will be reduced by 66%.
Economic Association (BEA) has
About 70 lakh smokers will quit
proposed a 70% tax on all types
smoking, and about 71 lakh young
of cigarettes and tobacco in the
people will stop habituating to
next budget. The association
smoking. Also, the additional tax
reckons that doing so will reduce
smoking by about 66%, alongside revenue of the government will be
generating revenue of Tk1,700 earned at least Tk1700 crores, the
crore for state coffers. According proposal stated.
to the BEA’s proposal, imposing a (Ref: [Link]

Over 10m income taxpayers in country now

The number of registered (TIN) holders reached 9.72 million
income taxpayers just crossed in the individual taxpayer category
the 10-million mark on Thursday while the number for companies
in Bangladesh for the first stood at 49,869, firms 77,103 and
time, raising hopes about the others 15,413. The number of total
strengthening of the direct tax TIN holders was 1.6 million in 2013.
base within a short time. According Of them, individual taxpayers were
to data of the National Board 1.01 million, companies 33,672,
of Revenue (NBR), the figure of firms 11,473 and others 7,295.
Taxpayer’s Identification Number (Ref: [Link]

Bangladesh to get first ‘green’ residential project with

Tk 1,080cr investment
Ananta Group, one of the top the capital city with an estimated in Energy and Environmental
garment exporters, is going to build investment of Tk 1,080 crore. The Design) Platinum-certified gated
Bangladesh’s first environment- project -- Ananta Terraces -- will community under the residential
friendly residential complex in be the first LEED (Leadership category in Bangladesh.
MBPLC. SPECTRUM 15
The recognition comes from the constructed. LEED-certified safe building materials to ensure
United States Green Building homes are designed to
comfort and good health.
Council. Under the project, provide clean indoor air and
nine 21-storey towers will be ample natural light and use (Ref: [Link]

Project Cost Other Details Apartment Price

(Per square foot)
Total cost of the project Tk 1,080cr Total area of the project 43 bighas
Will be Tk 10,000 less
Syndicated loan Tk 500cr There will be nine residential towers (21-storied) than that in Gulshan
Equity Tk 580cr There will be a shopping mall of 2 lakh square feet and Baridhara

Foreign Loan: Repayment crosses $4b for first time

Outstanding Foreign Debt Repayment of Foreign Loan
Billion Dollar Billion Dollar

8.36 4.78
State-owned
Enterprises
(Power, 3.61
Crude Oil, 3.16 3.29
Aircraft, 2.82
Fertiliser)

62.4
Govt

2019 2020 2021 2022 2023

Foreign loan repayment, which repayment stood at $4.78 $400 million. Going forward,
was hovering around $3 billion billion, up 32.8 percent year- the repayments are expected
since fiscal 2012-13, crossed on-year, according to the to increase further because of
the $4 billion-mark for the Economic Relations Division. exchange rate volatility and the
first time last fiscal year on the
The repayment increased $1.18 possibility of LIBOR/SOFR and
back of high interest payments
and short-term loans in the billion from fiscal 2021-22. In EURIBOR rates ticking up, the
power and energy sector. In previous years, the repayments ERD said in its latest report.
fiscal 2022-23, foreign loan increased between $100- (Ref: [Link]

MBPLC. SPECTRUM 16
Flour costlier amid import surge, lowest global price
Wheat flour and flour-made
food items have witnessed a
Wheat inports by BD Global Price Range
Million Tonnes US$ per tonne during sept-feb
20-22-percent hike in last two
months, although import of the FY23
grain rose by a great margin so 440-340
far this year. Insiders said local
companies raised the prices of all 2.62 FY24
flour and flour-made products at 3.7 248-215
a time when the global rate has
fallen to a record low in the last
six months.
Jul 1-Feb 25, FY23
Bangladesh imported 3.7-million
Jul 1-Feb 25, FY24
tonnes of wheat so far in the
Source: MoF, DGoF, Markets, [Link]
current fiscal year (FY24), which
was nearly 2.62-million tonnes in wheat import was 3.9-million of the import, according to the
the corresponding period of FY23 tonnes in FY23. The private sector Directorate General of Food.
- a 41-per cent surge. The overall comprises above 80 per cent (Ref: [Link]

RMG exports fetch $5b in January

The RMG sector, the highest 50 days of this calendar year, recession. Export revenue was
earner of export receipts of recovering from the downward $1.729 billion till Feb 20 the year,
Bangladesh, earned nearly $5.0 trend in the final three months of according to media reports. In
billion in January 2024 after the last year. 2023, Bangladesh exported
political stability following the Bangladesh shipped $4.97 goods worth $47.386 billion,
national election. The country’s billion worth of garments to the which was $1.677 billion more than
export earnings grew by 14 per EU countries and the US amid the previous year.
cent to $6.70 billion in the first the global political crisis and (Ref: [Link]

MBPLC. SPECTRUM 17
ADP execution rate at 14-yr low
Development works lose gear as
ADP implementation recorded an
Spending in Jul-Jan Period As percentage
annualised rate of only 27.11 per of annual development allocation
cent during first seven months
33.35% 34.43%
of this fiscal by official count-the 32.07%
lowest in 14 years. In the July- 30.21%
28.45% 28.11% 27.11%
January period of the current
fiscal year (FY) 2023-24, the
government agencies spent Tk
744.64 billion or 27.11 per cent
of the total Tk 2.74-trillion ADP
outlay, data of the Implementation
Monitoring and Evaluation Division
(IMED) showed.

The ADP execution rate in the 2018 2019 2020 2021 2022 2023 2024
same period last FY2023 was even
1.05-percentage-point higher at the government agencies during the period of the FY2023 had spent Tk
28.11 per cent, the government 720.90 billion, 28.11 per cent of the Tk2.56-trillion ADP.
data showed. According to IMED, (Ref: [Link]

RMG export to Europe reaches $13.92b in July-

January period

Bangladesh’s RMG export to the Bureau (EPB), Bangladesh’s export other hand, Germany the largest
European Union (EU) reached to Spain, France, the Netherlands export market of Bangladesh in
$13.92 billion during the July- and Poland showed 6.05 per
the EU, declined by 13.46 per
January period of the current cent, 4.25 per cent, 11.77 per
cent and 20.30 per cent growth cent fetching an amount of $3.51
fiscal year (FY24), with a growth
respectively during the same billion in this July-January period
of 1.32 per cent compared to
period of the current fiscal. compared to the same period of
the same period of the previous
fiscal year (FY23). As per the latest However, apparel exports to Italy the last fiscal (FY23).
statistics of the Export Promotion declined by 1.81 per cent. On the (Ref: [Link]

MBPLC. SPECTRUM 18
Garment export grows in non-traditional markets
Garment shipment to non-
traditional markets grew 11.69
percent year-on-year to $5.46
billion in July-January of the
current fiscal year. The overseas
sales stood at $4.89 billion
in the identical period a year
earlier. Among the major non-
traditional markets, the export
to Japan, Australia and South
Korea increased 8.74 percent,
23 percent, and 17.57 percent,
respectively, according to Export
Promotion Bureau (EPB) data
compiled by the Bangladesh
Garment Manufacturers
and Exporters Association
(BGMEA) showed.
(Ref: [Link]

62% young women not in employment, education

Total population in Bangladesh is 16.98 cr 61.71% 59.18%

Number of total young people who are NEET: 1.28 cr
NEET youth in % of total population: 40.67%

Young people aged between 15 years

and 24 years who are not in education,
employment or training’ (NEET)
18.59% 19.94%
Reasons of Female NEET on the rise
Lack of suitable jobs

Lack of technical and vocational training

Higher rate of female drop-outs in post-pandemic era
Low investment in education
Female NEET Male NEET
Lack of social and economic security in 2022 in 2021

Three out of five young women on the demographic dividend, points in 2022 to 61.71 percent,
in Bangladesh were considered BBS’22 data showed. according to the Bangladesh
NEETs (not in employment, Sample Vital Statistics 2022 of the
The NEETs are a group of
education, or training) in 2022, population aged 15-24. The share Bangladesh Bureau of Statistics
a waste of the workforce in a of women who are recognised (BBS).
country looking to thrive riding as NEETs rose 2.53 percentage (Ref: [Link]

MBPLC. SPECTRUM 19
 BANKING
INDUSTRY
BB sets minimum age for bank directors
Bangladesh Bank has set 30 as
the minimum age for a person to
become a bank director - a step
that goes with the Bank Company
(Amendment) Act, 2023. The
central bank announced this in
a circular on the formation of
the board and responsibilities of
directors of a bank-company.

Previously, there was no age limit

for becoming a bank director.
Taking advantage of this, some
banks appointed directors who
are as young as 22 years old, local
media reported quoting sources.
To qualify as a bank director, the business, or their respective gained before the age of 18,
BB said in the circular, a person it clarified.
profession. And that
must have at least 10 years of
experience in management, experience must exclude any (Ref: [Link]

MBPLC. SPECTRUM 20
BB cuts lending rate margin by 25 basis points
Bangladesh Bank has cut the Average Rate of Treasury bill)
lending rate margin by 25 basis in case of lending, down from
points to stabilise loan interest 3.75 percent, according to a
rates as the benchmark interest central bank notice. The lending
rate known as SMART has been rate margin will be 2.5 percent
increasing consistently since instead of 2.75 percent in case
introduction. From now, banks of loans for pre-shipment export
can impose a 3.5 percent margin and agriculture.
with SMART (Six months Moving (Ref: [Link]

BB continues liquidity support to cash-strapped banks

Liquidity feeding into credit- BB's Fund support to Banks (FY24)
hungry banks marks a significant Figures in trillion Tk 3.51 3.63
3.45
rise amid major liquidity crunch 3.12
facing the industry, officials say,
notwithstanding the central bank’s
1.67
contractionary monetary stance. 1.28 1.33
As the buildup of pressure on
the overall liquidity in the banking
sector continues following the Jul Aug Sept Oct Nov Dec Jan
contractionary monetary stance Source: Bangladesh Bank

taken by the Bangladesh Bank

to combat inexorable inflation, rates in their hunt for deposits. help them navigate the existing
sources at the BB have said, the But the gradual increase in banks’ liquidity tightness.
commercial banks raise interest deposit portfolios cannot alone (Ref: [Link]

BB sets age limit, bad loan recovery target for aspirant

CEOs of banks
The central bank has for the
first time set the minimum age,
default loan recovery targets
and other criteria for aspirant
chief executive officers of
banks and those looking to
be reappointed in the top job
as part of its efforts to restore
good governance and reduce
bad debts. The minimum age
for the managing director or
CEO has been set at 45 years
and the maximum age at 65,
according to the BB guidelines.
The nominated person must or institution of any director least two years of experience
not have any business interest of the lender. He or she will of working in the immediate
in the bank and can’t be have to have at least 20 years position below the CEO.
involved with any association of banking experience and at (Ref: [Link]

MBPLC. SPECTRUM 21
Defaulted loans soar 20.7pc in 2023
The banking sector’s defaulted
loans soared 20.7 percent to Tk
145,633 crore in 2023 as both
governance and accountability
continue to get looser. Defaulted
loans now account for 9 percent
of all outstanding loans, up from
8.16 percent a year earlier, as
per the latest data from the
Bangladesh Bank.
(Ref: [Link]

Cenbank introduces currency swap with banks to

rebuild reserves
The interbank reference rate,
which is currently Tk110 per dollar,
will be considered as spot rate
for the swap mechanism. The
Bangladesh Bank has introduced
a currency swap guideline for the
first time, under which it will buy
dollars from banks at the spot
rate in exchange for the taka. The
new arrangement aims to rebuild
foreign exchange reserves and
ease local currency liquidity stress.
(Ref: [Link]

Offshore unit officials to face fine if false info provided

The Bangladesh Bank will be
able to impose a fine of up
to $5,000 or an equivalent
amount in the local currency on
the officials of offshore banking
units (OBUs) if they provide false
information intentionally. The
penalty was included in the draft
Offshore Banking Act 2024 that
the cabinet division approved in
order to bring foreign and non-
resident Bangladeshi individuals
and institutions under the
domestic banking channel.
(Ref: [Link]

MBPLC. SPECTRUM 22
Bangladeshis’ credit card transactions in India surge
33% in Dec
Cross-border transactions made by
Bangladeshis using credit cards are
Credit Card Transactions in Dec 2023
International Transections Outside Bangladesh totaled TK 579.3cr in Dec 2023
on the rise, with the highest volumes
20%
reported in India, according to 40% India
Bangladesh Bank data. Foreign Other Countries
TK 232.8cr
TK 115.6cr

currency transactions via credit

cards saw a significant 33% 7% 13%
Singapore
increase in December compared to TK 40.1cr
United State
TK 73.2cr
the January this year. Bankers also
say currently, more people from 10%
10%
Bangladesh are travelling to India Thailand
UAE
TK 59.4cr
than to any other country. TK 58.4cr
Source: Bangladesh Bank

According to data from the

Bangladesh Bank for December in India, accounting for 19.95% of to Tk579 crore, with Tk116 crore
2023, it is evident that the majority all transactions. In the final month of being spent in India alone.
of credit card transactions occurred 2023, such transactions amounted (Ref: [Link]

Credit card spending abroad rose 19% in Dec

Bangladeshis travelling abroad $12,000 per year abroad using credit cards in India, followed
spent Tk 579 crore in December credit cards or by taking cash by the US, Thailand, Singapore,
last year to buy goods and with them when travelling. Of
Saudi Arabia, UK, Canada,
services, up 19 percent from a the total sum, 77.46 percent
month ago, Bangladesh Bank of the transactions were made and Malaysia. Meanwhile,
data showed. using VISA cards, 13.90 percent credit card transactions within
In November, the expenditure using MasterCard cards, and Bangladesh increased by only
by Bangladeshis abroad stood 8.61 percent using American 5.29 percent month-on-month
at Tk 487 crore. It was Tk 413 Express cards.
to Tk 2,674 crore in December,
crore in January last year and Tk The BB report also said that
it added.
388 crore in June. Bangladeshi Bangladeshis spent the highest
nationals can spend up to amount of US dollar through (Ref: [Link]

Govt giving Tk 74.9m incentives to jute farmers to

boost production
The government will provide
around Tk 74.9 million (7.49 crore)
as incentives to farmers to boost
jute cultivation across the country.
A total of 3,36,600 small, marginal,
and medium farmers would get
free seeds. Each farmer will get
one kilogramme of BJRI Tosha Pat-
8 (Robi-1) seeds for one hectare of
land under jute cultivation. The
disbursement of the intensives will
start soon at the field level.
(Ref: [Link]

MBPLC. SPECTRUM 23
Banks asked to encourage staff to take Universal
Pension Scheme
Bangladesh Bank has asked
banks to take measures in order to
encourage their employees to adopt
the government’s Universal Pension
Scheme. The instruction excludes the
employees working at government-
owned commercial and specialised
banks, the central bank said in a
notice. The scheme aims at bringing
the growing elderly population of
the country under a well-organised
social safety net and providing them
with a monthly stipend so that they
can meet expenses.
(Ref: [Link]

Suspicious transactions in banks

The just-released annual report in the financial sector. According to
of the Bangladesh Financial the report, at least 14,106 incidents
Intelligence Unit (BFIU) is a loud of suspicious transactions and
reminder of how the country’s financial activities were reported in
financial sector continues to 2022-23 fiscal year, which marks a
languish in disarray despite frequent
65 percent rise from the previous
calls over the years especially
year’s numbers.
by the development partners for
ensuring discipline and regulation (Ref: [Link]

Insurers with good records to be allowed to sell

through banks
Bancassurance is a partnership
arrangement between banks and
life or non-life insurers, where
banks act as corporate agents to
sell insurance products to their
existing customer base. Only select
insurers with a strong track record
of settling claims will be allowed to
participate in the bancassurance
business, according to the
insurance regulator.
Bangladesh currently has around
140 million bank customers.
Bangladesh currently has 35 life
insurers and 45 non-life insurers,
yet the insurance penetration rate
remains below 0.5 per cent of GDP.
(Ref: [Link]
MBPLC. SPECTRUM 24
Yields on bills and bonds are rising. What does it
mean for credit flow to private sector?
In December last year, the yield
of 364-day treasury bills (T-bills)
Yield of treasury bills %
stood at 11.28 percent, the highest 91-Day 182-Day 364-Day
11.5
in 11 years, against the backdrop
11
of government’s borrowing from
the financial market, witnessing 10.5
tightening liquidity supply. The 10
rising yield of T-bills and bonds,
dubbed zero-risk investments, 9.5

offers a good option for banks for 9

investment as these provide them 8.5
a cushion from the risk of default.
The increasing yield of T-bills also 8

attracts high-net-worth individuals 7.5

and corporates.
7
Jul Aug Sep Oct Nov Dec
(Ref: [Link]

Resolving banking sector’s distressed portfolio

problem
TBS Insights by
Table 1: Distressed Loans (in Billion Taka)

Total Total Outstanding Total Percent

Year
Outstanding NPL Rescheduled Loans Distressed Loans of GDP

2019 997 1,362 2,359 8.0

2020 888 1,556 2,444 7.7
2021 1,032 1,684 2,716 7.7
2022 1,206 2,128 3,334 8.4

Source:
Table 2: Distressed Loans (% of total Loans) Bangladesh Bank Financial
Stability Report 2022

Year Total Total Outstanding Total

Outstanding NPL Rescheduled Loans Distressed Loans

2019 9.30 12.70 22.0

2020 7.66 13.43 21.1
2021 7.93 12.94 20.9
2022 8.16 14.40 22.6

Banking sector reforms between healthy, private sector-dominated a low- income economy to a
1997 and 2012 vastly improved competitive industry. This lower-middle-income country and
the banking landscape of transformation played a key role set the stages for an aspiration
Bangladesh, converting the sector in enhancing private investment, to attain upper-middle-income
from an unhealthy public sector exports and GDP growth, which country (UMIC) status by 2031.
dominated enterprise to a more helped Bangladesh to climb from (Ref: [Link]

MBPLC. SPECTRUM 25
Banking Statistics Summary
Scheduled Bank 61

State Owned Commercial Banks (SOCBs) 6

Specialized banks 3

Private commercial banks 43

Conventional PCBs 33

Islami Shariah based PCBs 10

Foreign Commercial Banks (FCBs) 9

Non-scheduled banks 5

Non Bank Financial Institutions (FIs) 35

Photo: Bangladesh Bank Contribution of Banks in GDP 2.72% (2022-23)

Bank Deposit and Credit (Fig in Million)

Percentage Changes Sep,

Items Nov, 2023 Nov, 2022
2023 over Sep, 2022

Deposits held in DMBs 1,65,37,447 1,48,91,691 11.05%

Bank Credit 1,94,86,499 1,75,82,944 10.83%

Policy Rates and Reserve Ratios

Policy Rates (%) Reserve Ratios (%)
9.5% 13%

8%
6.5%

5.5%
4% 5%
4% 4%
2.5%
1.5%

Traditional Islamic Deposit Non Deposit

Banking Banking Takers Fls Taker Fis
Policy Rates SLF Rate SDF Rate Bank Rate
(Repo Rste) SLR CRR

MBPLC. SPECTRUM 26
Branches, ATM, POS, CDM and CRM
Period Branch ATM POS CDM CRM
Oct - 2023 11,239 13,655 107,035 285 3,799
Nov - 2023 11,246 13,437 107,144 260 3,897
Dec - 2023 11,284 13,436 108,469 263 4,035

Debit, Credit and Prepaid Cards (Fig in Million)

Transaction Transaction
Period Debit Cards Credit Cards Prepaid Cards
Number Amount (TK)
Oct - 2023 34.00 2.34 4.90 47.26 428,217.44
Nov - 2023 34.33 2.37 5.00 45.93 423,886.74
Dec - 2024 34.57 2.40 5.12 47.78 450,802.05

Mobile Financial Services (MFS) (In Million)

Transaction Transaction
Period Debit Cards Credit Cards Prepaid Cards
Number Amount (TK)
Oct - 2023 1.68 217.71 573.27 12,05,964.66 5,646.12
Nov - 2023 1.70 220.09 542.07 11,96,691.90 5,524.44
Dec - 2023 1.72 220.46 550.91 1,245,484.64 5,868.69

Agent Banking (Fig in Million)

Total No. Deposit No. of Transaction
Period No. of Agent No. of Outlet of A/C (in Balance (TK Transaction Amount (TK in
Million) in Million) (In Million) Million)
Oct - 2023 15,542 21,463 20.93 350,504.57 16.09 704,598.60
Nov - 2023 15,581 21,506 21.20 351,691.22 14.13 699,991.69
Dec - 2023 15,757 21,601 21.42 359,024.74 13.98 672,257.19

MICR and Non-MICR, EFT, E-commerce and Internet Banking (Fig in Million)
MICR & Non-MICR Cheque EFT
Period
Number Amount (in TK) Number Amount (in TK)
Oct - 2023 1.8569 21,51,687.12 27.3801 719,294.876
Nov - 2023 1.8589 20,59,520.74 16.2459 726,893.659
Dec - 2023 1.6648 1,830,523.4327 16.7800 681,828.6979

Internet Banking e-Commerce

Period
Number Amount (in TK) Number Amount (in TK)
Oct - 2023 10.3378 788,630.8319 5.1656 15,858.0794
Nov - 2023 9.7472 828,662.2630 5.2641 16,221.2215
Dec - 2023 9.8557 816,402.3582 4.8974 15,631.6480

MBPLC. SPECTRUM 27
No-frill Accounts (Fig in Million)
i) Farmers 10 Tk ii) Hardcore iii) Social Safety
Period iv) Others A/C Total Special A/C
A/C Poor A/C Net A/C
Oct - 2023 9.60 2.56 10.58 3.98 26.73
Nov - 2023 9.63 2.56 10.57 4.16 26.92
Dec - 2023 9.78 2.56 10.49 4.01 26.84

School Banking (Fig in Million)

Period School Banking A/C Deposit Balance (in TK)
Oct - 2023 3.96 22,020.56
Nov - 2023 4.02 21,995.19
Dec - 2023 4.06 21,791.90

Agricultural and Non-farm Rural Credit, SME Loan and Industrial Term Loan (TK in Cr)
Category Period Disbursement Outstanding
Agricultural and Non-farm Rural Credit Jul-Jan, FY24P 21,153.85 55,634.92
SME Loan Apr-Jun, FY23P 62,747.05 295,842.02
Industrial Term Loan Jan-Mar, FY23P 20,907.65 383,075.76

MBPLC. SPECTRUM 28
 MBPLC.
NEWS
Mercantile Bank Donates Fertilizer and Seed at
Kalaiya in Patuakhali

Mercantile Bank PLC. donated Surjomoni, Keshobpur, Kachipara, chief guest. Md. Quamrul Islam
Fertilizer and Seed (Mung Bean) Adabaria & Chandra Dip Union Chowdhury, Managing Director &
at Kalaiya in Patuakhali. A good on Saturday (17.02.2024) from CEO of Mercantile Bank presided
deal of Fertilizer and Seed (Mung the special CSR fund of the bank. over the ceremony.
Bean) had been distributed to the A.S.M. Feroz Alam, Vice Chairman
farmers of Kalaiya, Daspara, Dhulia, of Mercantile Bank handed over Besides, Md. Mukitul Kabir, VP &
Kalisuri, Bauphal, Najirpur, Boga, the Fertilizer and Seed (Mung Head of Corporate Affairs Division,
Naomala, Madanpura, Kanakdia, Bean) to the farmers as the Mohammad Shafruzzaman Khan,

MBPLC. SPECTRUM 29
FVP & Head of Agriculture Credit Branch, Md. Mosleh Uddin, Head of Kalaiya Branch, Md. Alomgir
Division, A. N. M. Jahangir Hossain, of Patuakhali Branch, Md. Faruque Hussain, Incharge of Kalisuri Bazar
Chairman of Daspara Union, Sikder, Head of Khepupara Upashakha and farmers were also
Golam Moula, Head of Barishal Branch, Md. Al Mamun, Head present on the occasion.

Mercantile Bank Donates 1700 bags of Fertilizer in

Daganbhuiyan

Mercantile Bank PLC. donated Hossain (Humayun), Sponsor Bank’s Managing Director & CEO
fertilizer at Daganbhuiyan in Director & Chairman of Executive Md. Quamrul Islam Chowdhury
Feni. 1700 bags of fertilizer had Committee of the bank handed presided over the ceremony.
been distributed to the farmers over the fertilizer among farmers Master Kamal Uddin, President
of Daganbhuiyan on February of Daganbhuiyan as the chief of Daganbhuiyan Upazila Awami
10, 2024 from the special CSR guest in a ceremony arranged League & Chairman of Ramnagar
fund of the bank. Al-Haj Akram at Ataturk Govt. High School. Union parishad and Rokshana

MBPLC. SPECTRUM 30
Siddiqi, Woman Vice Chiarman Division of MBPLC, Nur Nabi, of bank’s Feni branch, Monowar
of Daganbhuiyan were present Chairman of 1 No. Sindurpur
Hossain, Head of Daganbhuiyan
as special guests. Farid Uddin Union, Masud Raihan, Chairman
Ahmed Bhuiyan, SVP & Head of of 3 No. Purba Chandrapur Union, branch, MBPLC HOB’s of Feni
Bank’s Cumilla-Noakhali region, Belayat Ullah Swapan, Chairman
district, and the farmers were also
Mohammad Shafruzzaman Khan, of Dganbhuiyan Sadar Union, Md.
FVP & Head of Agriculture Credit Shahadat Hossain, FVP & Head present on the occasion.

Mercantile Bank Donates 10 Power Tillers at Faridganj

in Chandpur

Mercantile Bank PLC. donated the farmers as the chief guest. ceremomy. Md. Murad Hossain
10 Power Tillers at Faridganj in A program held at Sholla Ashek Chowdhury, Head of MBPLC
Chandpur February 11, 2024. Ten Ali School & College premises Faridganj branch moderated the
power tillers had been distributed in Sholla bazar, Faridganj. Kollol program. President and Secretary
to 10 farmers of Faridganj area Kishor Sarkar, Upazila Agriculture of Faridganj Press Club along
from the special CSR fund of Officer, was present as the with MBPLC HOB’s of Chandpur
the Bank. Md. Abdul Hannan, special guest. Farid Uddin Ahmed area, eminent businessmen and
Sponsor Director of the bank Bhuiyan, Bank’s Cumilla-Noakhali the farmers were also present on
handed over the power tillers to Regional Head presided over the the occasion.

MBPLC. SPECTRUM 31
Mercantile Bank starts Foundation Training for TAO
phase-IV
Mercantile Bank Training
Institute started two week long
Foundation Training for its Trainee
Assistant Officers (TAO) of phase
four recently. A total number of
37 officers participated in the
training. Md. Quamrul Islam
Chowdhury, Managing Director &
CEO of the bank inaugurated the
training and delivered his speech
highlighting the importance of
Foundation Training and advised
participating officers to be strictly
compliant with the banking ethics
and guidelines as well as be
proactive in providing excellent
service to the customers of the
bank. Tapash Chandra Paul program and conducted a of MBTI, moderaed the program
PhD, CFO of the bank delivered session for the participating while Shahin Akther, faculty of
opening remarks at the inaugural officers. Javed Tariq, Principal MBTI was the coordinator.

Mercantile Bank organizes Training for Direct Sales Team

Mercantile Bank PLC organizes
motivational training for direct
sales team (DST) recently. The
interactive training program was
held at training institute of the bank.
Forty six participants attended
the training program. Mati Ul
Hasan, Additional Managing
Director & CRO of the bank
inaugurated the said program. In
his address the AMD advised the
participants to fully adhere with
the Mercantile Bank products
and services and actively focus
on cross-selling of the products.
He also emphasized strongly
on the importance of customer
service. Dr. Tapash Chandra
Paul, CFO of the bank also spoke with the participants. The training of Retail Banking division of the
at the inaugural program. Md. sessions were conducted by Md. bank. The inaugural program
Zakir Hossain, Deputy Managing Nasim Alam, SVP & Head of Risk
Director and CBO (acting) Management division and Ashim was moderated by Javed Tariq,
conducted interactive discussion Kumar Saha, VP & Head (acting) Principal of the training institute.

MBPLC. SPECTRUM 32
Mercantile Bank held Training on ‘Customer Service
and Complaint Management’
Mercantile Bank organized
a day long training course
titled “Customer Service and
Complaint Management” at
its Training Institute in Dhaka
recently. GB In-charges of
40 branches participated the
training. Dr. Tapash Chandra
Paul, CFO of the bank,
inaugurated the training and
conducted a session. In his
address Dr. Tapash reminded the
participants on the importance
of banker-customer relationship
and its effectiveness. He strongly
emphasized on substituting High
Cost deposit with Low Cost and
No Cost deposit along with of the sessions were conducted and Shahin Akhter, faculty of
cross selling of scheme deposit by Sheikh Mohammad Soyeb MBTI. Javed Tariq, Principal of
products of the bank. The rest Hasan, AVP, Operations Division MBTI, moderated the program.

Mercantile Bank PLC. and Belmonte Group signs an MoU

Mercantile Bank PLC has recently MoU, the Employees and Staff of Assistant Vice President & Head
signed an MoU with Belmonte MBPLC and their family will get of Institutional Liability Marketing
Group. The MoU was signed Special Discount on purchasing Division Tapon James Rozario
by the Executive Vice President products and availing services from the Bank and the Manager
& Head of Human Resources from different concern of (HR & Admin) Md. Shahajalal Mia,
Division of the Bank Abu Asghar Belmonte Group throughout Manager (IT & MIS) Md. Masud
G. Haruni and the Managing the country. The Senior Vice Al Hasan, Manager (Marketing &
Director of Belmonte Group President & Head of Elephant Sales) Mohammad Ali on behalf
Mohammed Badsha on behalf Road Branch Pratap Kumar of Belmonte Group along with
of their respective organizations Deshmukhya, the Vice President other Officials from both the
at the Board Room of Belmonte and Head of Corporate Affairs organizations were present in
Group, Head Office. As per the Division Md. Mukitul Kabir and the ceremony.
MBPLC. SPECTRUM 33
BANGLADESH BANK CIRCULAR
FEBRUARY 2024
BRPD Circular DFIM Circular Letter No. 04, Date: 19/02/24,
Subject: Participation in Universal Pension
BRPD Circular Letter No. 11, Date: 29/02/24,
Scheme.
Subject: Interest/Profit Rate of Loan/Investment
DFIM Circular Letter No. 03, Date: 19/02/24,
BRPD Circular Letter No. 10, Date: 28/02/24,
Subject: Change of Designation for General Side
Subject: Theme for International Women’s Day, 8
and Cash Side of Bangladesh Bank.
March 2024
DOS Circular
BRPD Circular No. 05, Date: 27/02/24, Subject:
Appointment and Responsibilities of Managing DOS Circular Letter No. 04, Date: 06/02/24,
Director/Chief Executive Officer of a bank- Subject: Keeping scheduled bank branches
company. closed in the election area on 12th February 2024
Monday for Election of 47 Naogaon-2 of National
BRPD Circular Letter No. 09, Date: 20/02/24,
Parliament..
Subject: Observing the Martyrs’ Day and
International Mother Language Day DBI-3 Circular
BRPD Circular No. 04, Date: 18/02/24, Subject: DBI-3 Circular Letter No. 01, Date: 05/02/24,
Policy on Loan/Investment Write off and Subject: List of Audit Firms (Chartered
Formation of Written off Loan Recovery Unit and Accountants) Eligible for Auditing Banks and
its Functions. Finance Companies.
BRPD Circular No. 03, Date: 14/02/24, Subject: DID Circular
Appointment of Independent Directors of a Bank-
Company and their Duties, Responsibilities and DID Circular No. 01, Date: 01/02/24, Subject:
Honorarium. Regarding Submission of Information for Deposit
Insurance Premium Assessment
BRPD Circular No. 02, Date: 11/02/24, Subject:
Formation of Board and Responsibilities of FEPD Circular
Directors of a Bank-Company.
FEPD Circular No. 07, Date: 29/02/24, Subject:
BRPD Circular Letter No. 08, Date: 08/02/24, Relaxation of Regulatory Requirement in Offshore
Subject: Participation in Universal Pension Banking Operations
Scheme.
FEPD Circular No. 06, Date: 15/02/24, Subject:
DFIM Circular Currency Swap between Bangladesh Bank and
Commercial Banks
DFIM Circular No. 01, Date: 29/02/24, Subject:
Policy on Formation of Board and Responsibilities FEPD Circular No. 05, Date: 12/02/24, Subject:
of Directors of Finance Companies. Export Subsidy/Cash Incentive for the financial
year 2023-2024.
DFIM Circular Letter No. 05, Date: 20/02/24,
Subject: Regarding the Martyrs Day and FEPD Circular No. 04, Date: 01/02/24, Subject:
International Mother Language Day Celebration Interest rate ceiling for short term permissible
of Finance Companies. trade finance in foreign exchange

MBPLC. SPECTRUM 34
MBPLC. CIRCULAR
FEBRUARY 2024
INSTRUCTION CIRCULAR

Circular No. 3252 , Date: 29.02.2024, Subject: Circular No. 3240, Date: 14.02.2024, Subject:
Re-fixation of Profit/Mark-up Profit /Rent Rate Deposit the residual amount of registration fees
on all types of Investment products under Bank’s urgently
Islami Sharia’ah Based Banking operations w.e.f.
Circular No. 3239 , Date: 13.02.2024, Subject:
01.03.2024
Provide information regarding liability position
Circular No. 3230 , Date: 29.02.2024, Subject: (if any) on account of i. Samia Garments (Pvt.)
Re-fixation of interest rate (s) on all unclassified Limited ii. SMS Accessories Limited & iii. SMS
Loans & Advances Products Limited along with its allied /sister/
related concern and Directors within 14.02.2024
Circular No. 3249 , Date: 29.02.2024, Subject:
Product Program Guideline (PPG) of Resident Circular No. 3237 , Date: 11.02.2024, Subject:
Foreign Currency Deposit (RFCD) Account Sending of a copy of Certificate of Loan
[‡iwm‡W›U d‡ib Kv‡iwÝ wW‡cvwRU GKvD›U] & Offshore Documentation Checklist (LDCL) to Internal
Banking Fixed Deposit Receipt (OB FDR) Account Control & Compliance, Head Office, Dhaka.
[Ad‡mvi e¨vswKs wd·W wW‡cvwRU wiwmÞ GKvD›U]. Circular No. 3236, Date: 07.02.2024, Subject:
Circular No. 3248, Date: 29.02.2024, Subject: Øv`k RvZxq msm‡`i 47 bIMvu-2 Avm‡b wbe©vPb Dcj‡¶¨ †fvU
Recommence of Web Based Welfare Fund MÖn‡Yi w`b 12 †deªæqvwi 2024 mswk­ó wbe©vPbx GjvKvq mvaviY
Module of Online HRM System. QzwU †NvlYv cÖm‡½|

Circular No. 3248, Date: 27.02.2024, Subject: Circular No. 3235, Date: 06.02.2024, Subject:
Uniform Terms & Conditions of different Scheme Adjustment of Forced Loan created against
Overdue Import Bills and IBDA
Deposit Products.
Circular No. 3234, Date: 05.02.2024, Subject:
Circular No. 3245, Date: 25.02.2024, Subject:
Commencement of Live operation of Government
Transferring of fund from Co-ordinating Agencys
Securities Cliental Services Window under
Bank Account to Lead Agencys Bank Account.
Financial Market Infrastructure (FMI) System.
Circular No. 3244, Date: 22.05.2024, Subject:
Circular No. 3233, Date: 06.02.2024, Subject:
cwi‡ek evÜe A_©vqb I †UKmB A_©vq‡bi (cwi‡ek evÜe
Introducing Key Performance Indicators (KPI)
A_©vqbmn) 2024 mv‡ji evwl©K j¶¨gvÎv wba©vib I AR©b cÖm‡½|
for the employees of the Bank effective from
Circular No. 3243, Date: 25.02.2024, Subject: 01.01.2024 and onward.
Mercantile Bank Digital Banking Campaign-2024
Circular No.3232, Date: 04.02.2024, Subject:
Circular No. 3242, Date: 20.02.2024, Subject: Time Extension for Haj Registration 2024
Product Program Guideline of Bai-Mujjal Staff
Circular No. 3231, Date: 04.02.2024,
Investment Scheme for MBPLC employees.
Subject: Revised Provisional Profit Rate for
Circular No. 3241, Date: 18.02.2024, Subject: Mudaraba Savings Account of Banks Islamic
Instructions regarding FDBP Facility Banking Operations

MBPLC. SPECTRUM 35
 Circular No.3230, Date: 04.02.2024, Subject: Companies as Approved Insurers of our Bank of
Collection of Subscription Fees against Initial the Year’ 2024.
Public Offering (IPO). Circular No. 2099, Date: 05.02.2024, Subject:
Circular No.3229 , Date: 04.02.2024, Subject: Published of Primarily Eligible Haj Agencies list
Revised Interest rate of Savings Bank (SB) (08th phase) for 1445 Hijri/2024 Christian Era.
Account ID CIRCULAR
INFORMATION CIRCULAR Circular No. 8, Date: 18.02.2024, Subject: 2023-
Circular No. 2106, Date: 20.02.2024, Subject: 2024 A_©eQ‡i ißvwbi weci‡Z ißvwb cÖ‡Yv`bv /bM` mnvqZv
Currency Swap between Bangladesh Bank and cÖ`vb
Commercial Banks. Circular No. 7, Date: 04.02.2024, Subject:
Circular No. 2105, Date: 18.02.2024, Subject: Interest rate ceiling for short term permissible
Signing of MoU with Belmonte Group for trade finance in foreign exchange.
availing discount facilities from different concern
of Belmonte Group- i) Belmonte Fabrics Limited Circular No. 6, Date: 04.02.2024, Subject:
ii) Belmonte Mart and iii)Raymond Collection cvURvZ cY¨ ißvwbi wecix‡Z ißvwb fZ©zwKi Av‡e`‡bi mv‡_
Limited for all Employees and Staff (including G‡mvwm‡qk‡bi mb`cÎ `vwLj cÖms‡M|
their family) of MBPLC Circular No. 5 , Date: 04.02.2024, Subject:
Circular No. 2103, Date: 15.02.2024, Subject: 2023-2024 A_©eQ‡i ißvwbi wecix‡Z ißvwb cÖ‡Yv`bv/bM`
Renewal of Enlistment of 07 (Seven) Insurance mnvqZv cÖ`vb|

INVITATION FOR CONTENTS

You are cordially invited for any insightful write up which will be published in next volumes of
MBPLC. Spectrum subject to discretion of editorial board. In this regard, please contact Research
& Planning Division, Head Office, Mercantile Bank PLC. or send email hod_rpd@[Link]

DISCLAIMER
“MBPLC. Spectrum (Monthly Online Bulletin)” is a limited publication of Mercantile Bank PLC.
(MBPLC.). The contents of this publication have been collected through various sources of public
information that are believed to be reliable and MBPLC. has taken reasonable care to ensure that
such information is accurate.

MBPLC. SPECTRUM 36