State-owned Sonali Bank Limited has revised its interest rates on deposits five times in last six months.
The bank’s circular, issued by the treasury management division, shows that Sonali Bank had first re-fixed deposit interest rate on June 20, which came into effect from July 1.
Then it issued fresh circulars on Aug 21, Oct 6, Nov 10 and Dec 31 fixing new rates.
The latest rates have come into effect from Jan 1.
Sonali Bank has reduced interest rate by 0.50 percent to 1 percent on various fixed deposits.
Through earlier circulars the bank had either increased or reduced interest rate on deposit schemes.
Changes were also made to the bank’s savings schemes such as monthly earning scheme and double benefit scheme.
Many clients withdrew deposits from Sonali Bank after media reports of corruption, including the Hallmark loan scam involving the bank in 2012.
The bank faced a huge cash crunch, forcing it to borrow money.
Sometimes the largest state-owned bank could not raise finance from call money market.
Bangladesh Bank helped keep Sonali Bank afloat with special liquidity support.
In an attempt to increase its deposit collection, Sonali Bank has raised deposit interest rate. It increased interest rate by 1.5 percent on term deposit.
Once the liquidity crisis is over the bank will start cutting back on interest rates.
Deposit interest rate was increased in the first two circulars, but was reduced in the last three circulars.
At present Sonali Bank has 1,201 branches.
According to the latest information, the country’s largest commercial bank has total deposit of Tk 60,000 crore.
Source: Bd news24