The net sales of the government's savings instruments have been experiencing a declining trend for the last few months due to cut in yield rates, said officials.
The statistics of the Department of National Savings (DNS) showed that sales of savings instruments came down to Tk 19.76 billion in July from Tk 21.70 billion in June from Tk 24.33 billion in May and Tk 29.57 billion in April this calendar year.
The government slashed the rates of returns by nearly two per cent on savings certificates recently. Presently, the rate of yield is up to 11.52 per cent which was 13.45 per cent earlier. Besides, social security premium (SSP) which was 0.99 per cent on every savings certificate after maturity has been withdrawn.
However, the officials said following reduction in rates of yield, the number of savers in the sector dropped slightly. But still now the sales volume is good. If the present trend continues, the net borrowing target will be fulfilled easily, they added.
The government fixed the target of net borrowing from the savings tools at Tk 150 billion for the fiscal year (FY) 2015-16.
Besides, the net sales in July of the FY2015-16 are 6.0 per cent more than those of the same month of the previous fiscal. The net sales stood at Tk 19.76 billion in the first month of current FY which is up from Tk 18.57 billion in July in FY 2014-15.
According to the DNS data, the net borrowing from the sector was Tk 287.32 billion in the last fiscal year (2014-15) and Tk 117.07 billion in FY 2013-14.
The official said following reduction in the rates of yield, a section of investors was discouraged to invest in DNS instruments. So, sales have now dropped to some extent, he said.
But the rates of return on public savings schemes are also still more attractive than those of bank deposits, they pointed out.
arafat_ara@hotmail.com
Sales of savings tools drop in July
FE Report | Published: August 30, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
Share if you like