Dhaka, Bangladesh (BBN)- The overall deposit growth in Bangladesh’s banking sector increased further in July while the net sales of national savings certificates (NSCs) dropped drastically.

All the scheduled banks’ deposit growth stood at 12.47 per cent year-on-year as of July 31, up from 11.48 per cent a month ago. It was 10.96 per cent as of March 28 this calendar year.

Excluding inter-bank balance, all banks’ deposits rose to around BDT 12 trillion as of July 31 from BDT 11.81 trillion a month ago. The figure was BDT 11.20 trillion as of March 28.

“Some savers are now switching over to banks from savings certificates along with higher growth of inward remittance helped pushing up the deposit growth further in the banking sector,” a senior banker explained.

He also said the existing upward trend of deposit growth is expected to continue in the coming months that will help the banks to boost credit with keeping their ‘ADR/IDR’ at safe limit.

On the other hand, the net sales of national savings tools plunged by more than 57 per cent to BDT 21.60 billion in July 2019 from BDT 50.36 billion during the same period of the last calendar year. It was BDT 32.08 billion in June this year.

The net sales of saving certificates dropped drastically during the period as the government imposed tax along with some conditions on purchasing savings instruments.

Under the conditions, providing tax identification number (TIN) has been made mandatory for buying the tools if the amount exceeds BDT 100,000.

Buyers now require doing all transactions of savings tools through banks.

Also, the government has already developed a database of small savers to watch if there is anyone crossing the investment limit or making fictitious investments.