Deposit rates may fall further to bring lending rate at single digit

Last updated: November 27, 2015

Dhaka, Bangladesh (BBN) - The interest rates on deposit may fall further in the coming months for bringing down the lending rates at single digit, chief executives of different banks hinted on Friday.

They also said most of the banks are now trying to bring down the interest rates on lending into single digit from January next year aiming to boost investment in different productive sectors.

The observations were made at a Bankers Meet Customers programme held at Bangla Academy in the capital Dhaka on Friday as part of the ongoing banking fair.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day long banking fair on Bangla Academy premises in Dhaka on Tuesday aiming to build a banking nation through boosting the ongoing financial inclusion campaign across the country.

The programme was moderated by Dr Biru Paksha Paul, Chief Economist of the Bangladesh Bank (BB) and Chief Coordinator of the Banking Fair Bangladesh-2015 while 10 chief executive officers (CEOs) of different commercial banks attended.

Most of the banks are now offering around 7.0 per cent interest rate on fixed deposit, while charging between 12 per cent 20 per cent on lending, according to sources in the banking sector.

The country’s business community earlier urged the BB governor to take initiatives to reduce the lending rates to facilitate business activities, particularly to augment industrialisation in Bangladesh.

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