Eight banks raise interest rate on deposits
Sunday, 3 October 2010
FE Report
Eight commercial banks raised interest rates on deposits last month while interest rates on lending remained almost unchanged, officials said.
"Some banks may increase the interest rates on deposits slightly in the near future to meet growing demand for fresh funds," a senior official of a leading private commercial bank told the FE Saturday without elaborating.
The country's commercial banks now offer interest rates upto 10.03 per cent on fixed deposits, while the rates for savings accounts are 8.50 per cent, according to the central bank statistics.
"The overall interest rates in the banking sector may decline in the coming months if interest rates on deposits are increased while keeping the lending rates unchanged," a senior official of the Bangladesh Bank (BB) said adding that the central bank is monitoring the interest rate closely.
The interest rate of commercial banks increased slightly in June last despite the central bank's persuasion to lower the same, at least below 5.0 per cent.
The weighted average lending and deposit rates in the banking sector rose to 5.27 per cent as on June 30 last from 5.20 per cent in March, 2010.
The weighted average rates on lending stood at 11.23 per cent in June last while the interest rates on deposit were paid at 5.96 per cent by the banks.
Currently, the banks provide loans to large and medium-scale industries at interest rates ranging between 11 per cent and 13 per cent and to small industries between 10 per cent and 18 per cent.
Interest rates on housing loans range between 9.99 per cent and 13.00 per cent and on consumer credits between 11.50 per cent and 19.50 per cent.
The banks' lending rates on working capital to large and medium scale industries vary between 10 per cent and 13 per cent and for small industries between 11.50 per cent and 16.75 per cent.
Eight commercial banks raised interest rates on deposits last month while interest rates on lending remained almost unchanged, officials said.
"Some banks may increase the interest rates on deposits slightly in the near future to meet growing demand for fresh funds," a senior official of a leading private commercial bank told the FE Saturday without elaborating.
The country's commercial banks now offer interest rates upto 10.03 per cent on fixed deposits, while the rates for savings accounts are 8.50 per cent, according to the central bank statistics.
"The overall interest rates in the banking sector may decline in the coming months if interest rates on deposits are increased while keeping the lending rates unchanged," a senior official of the Bangladesh Bank (BB) said adding that the central bank is monitoring the interest rate closely.
The interest rate of commercial banks increased slightly in June last despite the central bank's persuasion to lower the same, at least below 5.0 per cent.
The weighted average lending and deposit rates in the banking sector rose to 5.27 per cent as on June 30 last from 5.20 per cent in March, 2010.
The weighted average rates on lending stood at 11.23 per cent in June last while the interest rates on deposit were paid at 5.96 per cent by the banks.
Currently, the banks provide loans to large and medium-scale industries at interest rates ranging between 11 per cent and 13 per cent and to small industries between 10 per cent and 18 per cent.
Interest rates on housing loans range between 9.99 per cent and 13.00 per cent and on consumer credits between 11.50 per cent and 19.50 per cent.
The banks' lending rates on working capital to large and medium scale industries vary between 10 per cent and 13 per cent and for small industries between 11.50 per cent and 16.75 per cent.