Several of the private banks which declared single digit interest rate, are now imposing high interest rates. Bangladesh Bank information says that only three banks have brought down interest rates to single digit which includes a private, a specialised and a foreign bank.
Though bank owners declared that from Jul 1 last year, interest rate would be 1 percent.
As per central bank’s report, 54 of the 57 banks take double digit interest and some banks are taking 15 percent interest against loans given to education institutes.
The central bank report of March 2019 shows that City Bank NA, NRB Bank and Bangladesh Krishi Bank have imposed 9 percent interest.
Some banks are disbursing 7 percent and 9 percent interest rates for export and agriculture sectors.
But loans in other sectors, like consumer, trading, housing loans, rates have hovered between 17 and 18 percent.
A client of private bank, MTB, said, “From Mar 1, the bank gave a letter, raising the interest rate to 16 percent, citing a decision by the board.”
The report also states that last Feb 21 private banks raised their interest rates; six foreign banks, two state owned ones and one specialised bank also raised their interest rate.
Banks giving credit card facility also impose double digit interest rates with bank officials dispelling the possibility of credit card interest rate falling to single digit.
Bank Managing Directors say that taking savings at double digit and distributing loans at single digit means taking the banks towards loss.
One MD says: “If we get government reserves at low interest rate then we can disburse loans at a low rate.”
On the other hand, businessmen and industrialists say that rise of interest rate has created problems for them and high rate is impeding growth of new industries.