The amount of deposit in the banking sector has seen a sudden rise, leading to the dissipation of the liquidity crisis.
On average, banks are getting deposits of more than Tk 200 billion every month. In the last three months (April-June), the deposit has risen by Tk 607.86 billion, says a Bangladesh Bank report.
At the beginning of the year, the picture was different since deposits were being withdrawn; many banks were failing to get deposits by increasing interest rates.
As per the central bank, in the last one year, the deposit at banks has risen by over Tk 1.22 trillion.
Of this, the rise in the first nine months was Tk 608.82 billion and Tk 607.86 billion in the last three months.
Former governor of Bangladesh Bank, Dr Salehuddin Ahmed, says: “Banks have increased interest on deposits and restrictions have been imposed on savings bonds, which have had a positive impact on the rise of deposits.”
Managing Director of a private bank, says: “Apart from restrictions on savings bonds, deposits are coming to banks after the introduction of attractive interest rates; also, import expenditure has fallen against a rise in export earnings, which have played a role in the increase of deposits.”
Reportedly, in the last few months, several banks got a deposit with 14 per cent interest and many bank officials have been given targets to increase deposits.
Some banks are collecting deposit with the promise of doubling the deposited amount in five years. Bangladesh Bank says deposit has seen the most rise at private banks.
In the last three months, April-June, deposit at private banks has risen to Tk 467.56 billion.
The government also took steps to lower the sales of savings bonds; this fiscal year, tax on savings bonds has risen to 10 percent instead of 5.
In addition, TIN and bank accounts will be mandatory to buy bonds worth more than Tk 1 trillion.
Steps have also been taken to prevent a person from buying bonds from several banks.