Economy
BSEC to probe into Bay Leasing financials
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday formed a three-member committee to look into the financial statements of Bay Leasing and Investment Limited – a non-bank financial institution – as its net profit has drastically dropped.
Headed by BSEC Additional Director Md Kawsar Ali, the other committee members are Deputy Director Kazi Md Al-Islam and Assistant Director Md Atikur Rahman.
It will review the company’s financials for four quarters, share price movement, insider trading, and manipulation, if any, during the period.
The officials will conduct the inquiry and submit their report to the commission within 20 working days.
Market insiders said usually an investor decides to lodge money in a listed firm considering its fundamental and business prosperity.
But due to such an earnings deviation of the company, investors suffer drastically.
The company provided an explanation through the stock exchanges that the consolidated earnings per share decreased due to profit after tax drastically falling because of an increase in provision by 1,343.01pc although the increase of operating income was 68.36pc.
The total provision had been kept against lease and investment in the share of Tk97.72 crore. Additional Tk57.72 crore had been added for the year-end 2021 as per the explanation.
Company Secretary Sharmin Akhter declined to comment in this regard.
Incorporated in 1996, Bay Leasing and Investment was listed on the stock market in 2009.
The company extended lease financing as its core business for all types of machinery and equipment including vehicles for industrial, commercial, and private purposes.
It has also expanded its activities into term finance and housing finance.
BLI Capital Limited is a subsidiary company of Bay Leasing and Investment. It also has two associate companies – Lucky Feed Limited and BLI Securities Limited.
In 2021, the company recommended a 5pc stock dividend for its shareholders compared with a 10pc cash dividend in 2020.
In that year, it incurred a loss of Tk13.92 crore, taking its losses per share to Tk0.99.
From April to June 2022, its net profit was Tk3.54 crore and earnings per share stood at Tk0.25.
As of August this year, sponsors and directors held 30.07pc, institutions 21.42pc, foreign investors 0.15pc, and general investors 48.36pc shares of the company.
The last closing share price of the company on the Dhaka Stock Exchange was Tk23.90 on Thursday.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
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