State-owned commercial banks have cut down interest rates on term deposits after the government slashed interest on savings instruments.
The decision will be effective from this Monday, June 1.
Sonali, Janata, Agrani, Rupali and Basic banks cut interest rates by up to 0.5 percentage points.
However, the interest cut would not be applicable for existing deposits in banks.
Internal Resources Division had issued a circular on May 23 cutting the interest on savings certificates by up to 1.9 percentage points.
Agrani Bank Chairman Zaid Bakht told bdnews24.com the deposit rate cut was aimed at lowering the interest on lending.
He said: “The government has slashed the interest on saving instruments. And the demand for lending is low now. The decision to cut the deposit has been made in view of the overall situation.”
Bakht said: “We’re trying to increase collection of no-cost and low-cost deposits by discouraging high interest-bearing deposits so that interest on lending can be cut.”
Sonali, Janata and Rupali have fixed the new rates on fixed deposits by reducing the previous ones by 0.5 percentage points.
According to the new announcement, the rates will be 7.5 percent on fixed deposits for three to six months, 7.75 per cent for six months to one year, and 8 percent for one year or more.
The rates of Agrani Bank have been fixed at 7.25 percent, 7.75 percent and 8 percent respectively for the three terms.
Before the new decision, the rates were 7.5 percent, 8 percent and 8.5 percent respectively.
Basic Bank’s new interest rates stand at 7.3 percent on deposits for one month, 7.5 percent for three to six months, 7.7 percent for six months to one year and 8 percent for one year or more.
Earlier, the rates were 7.5 percent, 7.75 percent, 8.25 percent and 8.5 percent respectively.
However, bank management can fix the interest on deposit of Tk 50 million or more based on ‘bank-client relations’.
Source: bdnews24