Dhaka, Bangladesh (BBN) – The state-owned commercial banks (SoCBs) are now charging maximum 10:50 per cent interest rate on term-deposit for other banks particularly private ones.

Most of the SoCBs have enjoyed a comfortable satiation on liquidity as the government agencies prefer depositing their funds with the public banks after the Farmers Bank incident.

Earlier, the Farmers Bank Limited declined the encashment of a fixed deposit worth over BDT 5.08 billion due to liquidity shortage. The money belongs to the Climate Change Trust Fund (CCTF).

The banks particularly private commercial banks (PCBs) are receiving term-deposit mainly for three months tenure from the public banks to meet their growing demand for liquidity, according to banking sector insiders.

They also said such higher rates on deposit, charged by the SoCBs, have also pushed up the overall interest rates on lending in the banking sector recently. The rate has already increased 2.0 per cent on the average.

Talking to the BBN, a senior official of the Bangladesh Bank (BB) said the central bank central bank has already been informed about the issue.

“We’re taking measures in this connection soon,” the central banker said without elaborating.

BBN/SSR/AD