Dhaka, Bangladesh (BBN)– At least 12 commercial banks increased interest rates on deposits August 2010, while interest rates on lending remained almost unchanged in the country’s banking sector.
“The overall interest rate spread may decline in the coming months if the banks increase their interest rates on deposits keeping the lending rates unchanged,” a senior official of the Bangladesh Bank (BB) official said, adding that the central bank is monitoring the interest rate spread closely.
“The overall interest rate may increase in the month of September in line with the central bank’s latest interest policy stance,” a senior official of a private commercial bank said.
On August 19 last, the central bank of Bangladesh increased its policy interest rate by 1.0 percentage point aiming to curb inflationary pressures on economy.
The interest rate on repurchase agreement (repo) was re-fixed at 5.50 percent on August 19 from 4.50 percent while the reverse repo rate was increased to 3.50 percent from 2.50 per cent.
The bank official also said the banks have increased the interest rates on deposits for receiving fresh funds from general depositors to keep their fund position at comfortable level.
The commercial banks now offer interest rates upto 10.47 percent on fixed deposits, while the rates for savings accounts at 8.50 percent, according to the central bank statistics.
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 at rates 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 19.00 per cent.
The banks’ lending rates on working capital to large and medium scale industries vary between 10.25 per cent and 13 per cent and for small industries between 11.50 per cent and 17.25 per cent, the BB’s data showed.
BBN/SSR/AD-29Aug10-12:35 am (BST)
