The decision to bring down interest to single digit has not seen the light of day as yet; some banks have imposed 20 percent interest.
In April last, Midland Bank has imposed 20 percent interest on consumer credit, with AB Bank imposing 19.50 percent interest and Trust Bank fixing interest rate at 19 percent.
IFIC Bank’s credit card interest rate is 15 percent but the interest rate on consumer credit is 19 percent.
From Jul 1 last year, the government and private owned banks declared to bring down interest on loan to single digit and interest in deposit to 6 percent, but later, following a meeting with the then finance minister, the time was extended.
Central bank report states that of the 57 commercial banks, 55 are taking two digit interest; of them, four banks have imposed interest more than 19 percent, 17 banks are taking interest higher than 16 percent.
Managing Director (MD) of a private bank says: “Banks are having to incur higher expenses in the past few years to collect deposit which has resulted in the rise of interest rates.
Due to liquidity crisis, collecting funds has become costly and that’s why banks are forced to raise interest rates.
As percentral bank information, only two banks, Krishi Bank and Citi Bank NA, have managed to bring down the interest rate to single digit.
Banks giving credit card facility have been taking two digit interest while some are taking 25 to 27 percent.
In January, February and March 28, 31 and 10 banks raised interest respectively.
Former adviser to the caretaker government, Dr. AB Mirza Azizul Islam, said, “Default loan is the main cause behind the increase of interest; the rise of interest on deposit has also caused a spike in interest on loans.