Dhaka, Bangladesh (BBN)– The credit-deposit ratio in 32 banks decreased significantly in January as credit demand in the market declined due to an unfriendly business environment amid political violence, officials said.
The overall CDR in the banking sector came down to 76.08 percent as of January 31 last from 76.59 percent of the previous month, according to the central bank statistics.
“A lower loan disbursement by the banks pushed down the CDR in the banking sector significantly from the permissible limit of 85 percent,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka. He also said the CDR in the banking sector will decline further in the coming months if the ongoing political instability persists.
Under the existing provisions, the conventional commercial banks are not allowed to invest more than 85 percent of their deposits while the Islamic banks and the Islamic wings of the conventional commercial banks can invest up to 90 percent of their deposits.
BBN/SSR/AD-23Mar13-11:40 am (BST)