Dhaka, Bangladesh (BBN)- At least 10 commercial banks increased their interest rates on deposits this month while the rates on lending remained almost stable, officials said on Wednesday.
The country's commercial banks now offer interest rates ranging from 1.25 percent to 10.03 percent on fixed deposit schemes, while the rates for savings accounts vary between 1.00 percent and 8.00 percent, according to the central bank statistics.
"The interest rates on deposit had been gradually increasing since November last indicating an up-trend in investment in different sectors including agriculture, small and medium enterprises (SMEs) and trade financing," a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
He also said some banks are trying to reduce their interest rate spread through increasing the interest rates on deposits.
"The savers will be benefited following rising trend of interest rates on deposits," Managing Director and Chief Executive Officer of the Agrani Bank Limited Syed Abu Naser Bukhtear Ahmed said.
Mr. Bukhtear also said the upward trend of interest rates on deposits will help reduce the overall interest rate spread in the country's banking system.
Currently, the banks provide loans to large and medium-scale industries at interest rates ranging between 11 percent and 13 percent and to small industries at rates between 10 percent and 18 percent.
Interest rates on housing loans range between 11.75 percent and 13.00 percent and on consumer credits between 11.50 percent and 19.50 percent.
The banks' lending rates on working capital to large and medium scale industries vary between 11 percent and 13 percent and for small industries between 11.50 percent and 18.00 percent, the BB data showed.
BBN/SS/SI/AD-28January10-2:55 am (BST)