Dhaka, Bangladesh (BBN)- Bangladesh’s all banks’ credit-deposit ratio (CDR) came down again to below 70 per cent in the last week of August indicates lower business activities in the country’s banking sector, bankers said.
All banks’ CDR came down to 69.91 per cent, as of August 28 last, from 70.42 per cent as of July 24, 2014. It was 69.92 per cent on March 27 last, according to the Bangladesh Bank statistics.
The central bank of Bangladesh earlier set the safe limit of CDR at 85 per cent for conventional banks and at 90 per cent for Sharia-based Islamic banks.
“Higher deposit growth than that of credits has contributed to fall the overall CDR slightly,” a senior official of a leading private commercial bank (PCB) told BBN in Dhaka.
The overall growth in credits from the banking sector came down to 11.08 per cent as of August 28 last from 11.74 per cent as of July 24, 2014 while the deposit growth fell to 14.48 per cent from 16.13 per cent.
The private banker also said the core business of banks witnessed a stagnated situation in the recent months due mainly to lower credit growth, particularly in private sector. “The investment situation is yet to improve at satisfactory level even after nine months of the national elections, held on January 5.”
BBN/SSR/AD-16Oct14-12:16 pm (BST)
