Wednesday 5 August 2020 ,
Wednesday 5 August 2020 ,
Latest News
  • Bangladesh reports 50 more Covid-19 deaths
  • Govt distributes over Tk 2.33cr among flood-hit people
  • Rain respite for Dhaka residents
  • Maritime ports asked to hoist warning signal 3
  • Khorshed Alam Sujan appointed as new CCC administrator
  • Coronavirus Hotline Numbers: 01944333222, 16263, 333; website: www.corona.gov.bd
3 July, 2018 00:00 00 AM
Print

Single digit interest rate for all loans, gradually

Staff Reporter

Commercial banks in the country have abided by a government directive to bring down the interest rate on loan down to 9 per cent from yesterday, but the bankers said implementing it for all types of loans will not be an easy task. As of yesterday, the rate had only been made applicable to the industrial loan, but the rates on consumer loan, SME loan, or credit card loan still hover around the double digit.

The managing directors of commercial banks held a meeting yesterday with Fazle Kabir, the governor of Bangladesh Bank, at his office. After the meeting, Syed Mahbubur Rahman, chairman of the Association of Bankers of Bangladesh (ABB), told reporters that single digit lending rates will be implemented for all types of loans.

He said the banks have already lowered the lending and deposit rates to 9 percent and 6 percent, respectively, in line with the instruction from the Bangladesh Association of Banks (BAB), a forum of the directors of the private banks.

He, however, confirmed that the 9 per cent rate has been implemented for industrial and capital loans, not for SME loan. “It’ll gradually be implemented for all sort of loans,” assured Rahman.

The ABB president also said that the association had also sought support from the central bank to implement the new rate, he said.

Rahman said on behalf of the MDs commercial banks, he had reiterated in the meeting the need for getting funds of the state-owned enterprises and commercial banks at 6 per cent interest rate at the private banks. “It will help the private banks bring down the lending rate,” Rahman said.

Meanwhile, talking with The Independent, the MD of a commercial bank who preferred to be unnamed told The Independent that like other banks, they would follow the government instruction of keeping the lending rate within single digit.

But, if the funds are not kept at the preferred rate and the amount of deposits is not increased then the the private banks will face difficulties in maintaining the single-digit lending rate, said the MD.

The MD also said banks might face business risk if interest rate is reduced to single digit for every kind of loans. If banks’ earnings drop it may affect the government’s revenue sector too, he added. The commercial banks are usually forced to offer higher interest rates on deposit to comply with the advance-deposit ratio (ADR) rules and the commitments made to their clients, they added.

Comments

Most Viewed
Digital Edition
Archive
SunMonTueWedThuFri Sat
01
02030405060708
09101112131415
16171819202122
23242526272829
3031

Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting