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Banks’ Tk 16,000cr
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stock market fell for many banks. For instance, Sonali Bank’s investment income nosedived 86 percent to Tk 72 crore, IFIC Bank’s earnings plunged 99 percent to Tk 1 crore, and National Bank’s income plummeted 71 percent to Tk 10 crore.
A lower profit for banks means lower dividends for investors. For example, City Bank announced a 10 percent dividend for 2022, which was 12.50 percent in 2021.
A merchant banker said there is apprehension among general investors that if the floor price, which is almost unprecedented in most stock markets across the world, is withdrawn, foreign investors and many other investors would sell off, bringing the market down. But the market would ultimately rebound as being seen in other countries.
Moniruzzaman said even blue-chip stocks, which are typically large, well-established, financially-sound companies with an excellent reputation, are not sought-after by investors since institutional investors and high-net-worth individuals are not coming up with large volumes of funds in the market.
Selim RF Hussain, chairman of the Association of Bankers, Bangladesh, a platform of the chief executive officers of banks in the country, terms the floor price a restriction.
“No restrictions are expected in the stock market.”
He said the restriction has turned the market almost immovable and is not benefitting any party in the market.
“Artificial pricing cannot be lucrative for anyone. We urge the BSEC to lift the floor price fast.”
All stakeholders from brokers and merchant bankers to asset management companies have long opposed the floor price mechanism as their business has been seriously affected.
But BSEC Chairman Shibli Rubayet-Ul-Islam last month said the stock market regulator would withdraw the floor price as soon as the economy returns to normalcy.
Bangladesh’s economy is going through a difficult situation owing to the volatility in the foreign exchange market, driven largely by the Ukraine war, and the conflict shows no sign of coming to an end anytime soon.
This means banks might continue to see a large volume of their funds, which are basically depositors’ money, remain stuck in the stock market in the coming months, yielding insignificant returns, which will ultimately hit their bottom line.

BGMEA misses
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election board as soon as possible.
Hassan was elected as the BGMEA chief from the Sammilita Parishad in the biennial election that took place in April 2021.
Faisal Samad, leader of the Forum, another panel of the association, said the Forum had reminded the president several times of forming the election board since time was running out, but he had not paid any heed.
As per the charter of the association and the conditions of the extension, the last date for the formation of the board was July 10, but the deadline was missed, the BGMEA director said.
So, the BGMEA might face a constitutional challenge as the election might not be held on time, he said, adding that the president did not uphold the constitution of the association by not setting up the board.
In January this year, the incumbent board decided to extend the tenure of the current board for six months, citing bad business conditions following the Russia-Ukraine war, the severe fallout of Covid-19 and a lower inflow of work orders from international buyers.