Net sales drop by 45.4pc in May

Net sales of National Savings Certificates (NSCs) dropped sharply in May 2026, reflecting weaker investor demand for the government-run instruments.

According to latest Bangladesh Bank (BB) data, the net sales of savings and investment tools fell by 45.4 per cent to Tk 12.34 billion in May from Tk 22.60 billion in April.

The figure was also lower than that of Tk 15.37 billion in May 2025.

On the other hand, the sales of NSCs stood at only Tk 8.05 billion during the first 11 months (July-May) of FY2025-26.

The volume of sales stood at negative Tk 21.35 billion in March 2026, following a deficit of Tk 11.65 billion in February and Tk 18.51 billion in January.

Meanwhile, the outstanding balance of government savings instruments edged up to Tk 3.34 trillion at the end of May 2026 from Tk 3.33 trillion a month earlier.

On a yearly basis, the deficit in the NSC sales declined significantly. In FY'25, the net sales showed a deficit of Tk 60.63 billion, compared to a much larger deficit of Tk 211.24 billion in FY24.

Although such trend indicates a stabilisation, the sector remains under pressure.

Market insiders said such a downward trend in the net sales in May reflected continued weak demand for savings instruments, despite showing an improvement from the sharp deficits earlier this year.

They noted that although the overall shortfall narrowed compared with that of the previous fiscal year, investor appetite for the government-backed savings instruments remained subdued.

However, the introduction of the National Savings Certificates Online Management System in 2019, which requires e-TIN and National ID verification, resulted in the participation of institutional and high-value investors in this sector.

At the same time, rising interest rates also made deposits more attractive in the banking sector, while inflation eroded actual returns from the fixed-income savings instruments.

Experts said higher deposit rates offered by banks and persistently high inflation has made NSCs less attractive for the investors.

Dr Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the slowdown in the NSC sales reflects changing investment preferences as higher deposit rates in the banking sector have made bank savings products more competitive.

Tighter compliance requirements under the online NSC management system have also reduced participation by large investors, he pointed out.

Dr Reaz said the recent improvement in net sales compared with the previous fiscal year suggests some stabilisation, but sustained demand for savings certificates will depend on inflation easing and the relative attractiveness of returns compared with other financial instruments.

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