Private banks have decided not to charge more than 9 per cent lending rate from next month.
The decision was taken at a meeting of Bangladesh Association of Bankers (BAB), a body comprised of sponsors of such financial institutions, in Dhaka on Wednesday.
BAB President Nazrul Islam Mazumder told the media that from July 1 the banks will charge 6 per cent interest rate on three-month deposit while the lending rate will not exceed 9 per cent.
If any bank flouts the decision, action will be taken against it, he said.
Islami Bank, Social Investment Bank, Union Bank, First Security Islami Bank and Al-Arafah Bank have already declared to reduce the rate single digit and it will also be implemented from July 1, he added.
The BAB chief said, they have taken the decision in line with the instruction of Prime Minister Sheikh Hasina.
In the meeting, the sponsors of the banks demanded that investment in savings certificate should be stopped.
Nazrul said, they would discuss about the problems in the sectors with prime minister, finance minister and governor.