Dhaka, Bangladesh (BBN)– Overall interest rate spread in the country’s banking sector increased sightly in March as the commercial banks have slashed their interest rates on deposit more than that of leading rates, bankers said.
The weighted average spread between lending and deposit rates offered by the banks rose to 4.86 per cent in March 2016 from 4.81 per cent in the previous month, according to the central bank latest statistics. It was 4.84 per cent in January 2016.
On the other hand, the weighted average rates on deposits came down to 5.92 per cent in March last from 6.10 per cent in the previous month while interest rates on lending dropped to 10.78 per cent from 10.91 per cent.
Talking to BBN, a senior banker said existing trend of lending and deposit may continue until June this year. “We expect that the overall interest rate situation may reverse after announcement of the next national budget for the fiscal year (FY) 2016-17.
The spread being maintained by at least 25 commercial banks out of 56 still ranges between more than 5.0 per cent and 9.63 per cent.
Average spread of the six state-owned commercial banks (SoCBs) is 3.86 per cent, private commercial bank (PCBs) 5.09 per cent, foreign commercial banks (FCBs) 7.34 per cent and specialised banks (SBs) 2.02 per cent.
“The central bank is now pursuing the commercial banks to bring down the spread nearly 4.0 per cent shortly from the existing level,” a senior official of the Bangladesh Bank (BB) explained.
He also said the BB has already advised the bankers for taking necessary measures in this connection.