Dhaka, Bangladesh (BBN)– Banks particularly private commercial banks (PCBs) have agreed to bring down their interest rates on deposit maximum at 6.0 per cent from February 01 as part of their preparation to execute 9.0 per cent lending rate from April o1.

The decision was taken at a meeting of the Association of Bankers, Bangladesh (ABB), held at Gulshan in the capital on Tuesday night with ABB Chairman Ali Reza Iftekhar in the chair.

Meeting reviewed the latest situation on interest rate issue particularly deposit rate in the country’s banking sector.

The ABB advised its member banks to take measures for brining down their interest rates on both lending and deposit to implement the single-digit interest rate – 6.0 per cent on deposits and 9.0 per cent on lending barring credit cards in line with the government’s announcement, meeting sources said.

As part of the moves, the banks also advised to slash their interest rates on deposit from February 01 for minimising the impact on the single-digit interest rate on their profitability.

Nearly 20 PCBs have already lowered the interest rates on fresh deposits by keeping their lending rates unchanged.

The PCBs have slashed their interest rates on deposit around 2.0 percentage points as part of their ‘preparation’ ahead of the execution of the single-digit interest rate on both lending and deposit.

The downward revision of the deposit rates comes much ahead of the date—April 01 next— announced by Finance Minister AHM Mustafa Kamal during his meeting with the chairmen and managing directors of the PCBs on December 30 last.