Dhaka, Bangladesh (BBN)- Overall interest rate spread in Bangladesh’s banking sector fell slightly further in September 2016 as the commercial banks slashed their interest rates on lending more than on deposits.
The weighted average spread between lending and deposit rates offered by the commercial banks came down to 4.76 per cent in September 2016 from 4.80 per cent in the previous month, according to the central bank latest statistics.
The spread was 4.84 per cent in July 2016.
The weighted average rates on deposits came down to 5.39 per cent in September last from 5.44 per cent in the previous month while interests on lending dropped to 10.15 per cent from 10.24 per cent.
The spread being maintained by at least 19 commercial banks out of 56 still ranges as high as between more than 5.0 per cent and 10.53 per cent, the Bangladesh Bank (BB) data showed.
Average spread with the six state-owned commercial banks (SoCBs) is 3.82 per cent, private commercial banks (PCBs) 4.89 per cent, foreign commercial banks (FCBs) 7.52 per cent and specialised banks (SBs) 2.69 per cent.
Excluding consumer finance and credit card, the spread of all banks rose to 4.66 per cent in September 2016 from 4.60 per cent a month ago.
BBN/SSR/AD