Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Saturday, February 16, 2019 06:13:36 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Deposits up, loans down

By bdnews24.com
Share your thought
Post a comment »
Read all () »

Loan distributions in the banking sector have failed to keep up with a steady increase in deposits in the last one year.
The central bank's latest report on deposits and savings shows that at the end of January deposits in the banking sector had grown 16.68 percent, while loan disbursements had increased only 10.68 percent.
Experts and stakeholders see this as an outcome of poor investment climate, high interests on loans and increased opportunities to borrow from abroad.
According to Bangladesh Bank, at the end of January, banking sector deposits stood at Tk 5,796.41 billion, while at the end of Jan 2013 it was Tk 4,967.63 billion. At the same time, the banks have disbursed loans worth Tk 4,564.60 billion. In Jan 2013, they had disbursed Tk 4,124.13 billion as loans.
Zayed Bakht, the Research Director at the Bangladesh Institute of Development Studies (BIDS), told bdnews24.com the investment climate was yet to fully recover from the recent political turmoil.
"Although there is no political unrest now, there is still some uncertainty. The number of utility connections hasn't reached the expected level and we are still reeling from the Hall-Mark crisis," he said.
Bakht, who is also a director of the state-owned Sonali Bank, said these were the reasons the banks were receiving deposits but remained unable to disburse them as loans.
Bangladesh Bank Chief Economist Hassan Zaman told bdnews24.com there had been an impact on the market as borrowers had been given new opportunities to take loans from abroad.
"This is an expected outcome. It will help push down interest rates to some extent," he added.
Helal Ahmed Chowdhury, the Managing Director of Pubali Bank, said there was a slump in the demand for loans.
"Besides that, the banks are a little cautious about handing out loans. Also, the foreign loan opportunities have had a role to play," he said.
According to latest central bank data, the loan-to-deposit ratio was 71 percent. According to the prevailing rules, the banks can disburse up to 81 percent of the deposits.
Faced with the shortage of loans, banks have been diverting their capital to government securities. Compared to Jan 2013, the banks have raised their investments to this sector by 35 percent.
According to Bangladesh Bank, at the end of January, banks' investment in this sector Tk 1,509.13 billion. At the end of Jan 2013, this was Tk 1,110.74 billion.
In 2011-12 fiscal year, foreign loans worth $ 1.04 billion came into the country, while in 2012-13 it grew by 43 percent to $ 1.82 billion.

Add Rate

News Archive

Inside The New Nation

Editorial »

Save the Sunderbans to save the Royal Bengal Tigers

FOR the constant rise in sea levels and rapid climate change, the famous Royal Bengal Tigers of the Sunderbans could be disappeared within 50 years, especially from the Bangladesh part, according to a new study published recently in the journal Science of The Total Environment. A team of Bangladeshi and ...

City »

Members of RAB-2 nabbed one on Friday from Narayanganj for taking money from government officials from different areas in the country impersonating Anti-Corruption Commission official.


Cricket »

Feels like it`s a blessing to just be playing again: Steyn

Agency :Dale Steyn, the South African mainstay, continued to impress on his comeback trail, as he bowled at high pace and picked up four wickets over a long spell on Day 2 of the first Test of the two-match series versus Sri Lanka in Durban.The veteran fast bowler bowled at ...

Entertainment »

Shanta Jahan feels comfortable in hosting

Sheikh Arif Bulbon :Popular host of present time Shanta Jahan has to be engaged with hosting round the year in and outside the country in different stage shows and TV programmes. Besides hosting, she has more identities. She is also a model and TV actress. But she always feels comfortable ...

International »

Trump heavier, but in ‘very good health’: Doctor

AFP, Washington :President Donald Trump is a little heavier than last year and needs a higher dose of cholesterol medicine, but remains in "very good health," his official doctor said Thursday.The presidential physician, Sean Conley, said Trump, 72, passed his medical exam last week with flying colors."It is my determination ...

Cricket »

It was difficult to hit through the line of the ball in Napier: Guptill

Martin Guptill is happy to work his way through the travails of a slow Napier pitch and score an ODI hundred, which helped New Zealand beat Bangladesh by eight wickets in the opening game of the three-match series. The hosts had notably lost the ODI against India here couple of ...

International »

Taliban announces surprise talks with US in Pakistan

PTI, Islamabad :The Taliban said Wednesday that its negotiators would meet US envoys for talks this month in Islamabad, and also sit down with Pakistan Prime Minister Imran Khan to discuss Afghanistan.While Islamabad did not immediately confirm the talks, Washington said it had "noted" the announcement, which comes after weeks ...

International »

Judge finds Manafort lied to investigators in Russia probe

AP, Washington :Former Trump campaign chairman Paul Manafort intentionally lied to investigators and a federal grand jury in the special counsel's Russia probe, a judge ruled Wednesday.U.S. District Judge Amy Berman Jackson's decision was another loss for Manafort, a once-wealthy political consultant who rose to lead Donald Trump's 2016 campaign ...

Editorial »

Myanmar`s provocation: Dhaka should deal with the issue delicately

YET again Myanmar has shown Saint Martin's Island of Bangladesh as of its part in the official map. Protesting it, Dhaka on Thursday summoned Myanmar Chargé d'affaires and handed over a strongly worded protest note also expressing serious dissatisfaction over repeating such false claim, and demanded immediate corrective measures. Director ...

City »

40 personnel receives Coastguard awards

Staff Reporter  :A total of 40 personnel of Bangladesh Coastguard have been awarded for the prestigious 'Bangladesh Coastguard Award', 'President Coastguard Award', 'Bangladesh Coastguard (service) Award' and 'President Coastguard (service) Award' this year for best performance in their duties. Home Minister Asaduzzaman Khan Kamal handed over the awards to them ...

Entertainment »

Adah hits bull`s eye with her gun for Valentine`s Day and the video goes viral

Did you know Adah Sharma is a trained sharp shooter? The Commando 2 actress shared a Valentine’s Day video breaking hearts, shooting them and didn’t miss even one target. Check out how with ease she picks up 5kg rifles and hits all 5 targets in less than a minute, with ...

Editorial »

None should create abnormal situation in apparel sector

AROUND 11,000 apparel workers of 99 factories in Dhaka, Ashulia, Savar, Gazipur and Narayanganj have so far been fired and 3,500 others have been implicated in 34 cases for their participation in the movement held in January demanding proportionately wage hike, according to the IndustriAll Bangladesh Council (IBC), a platform ...

Football »

Sala's body to be returned to Argentina on Friday

Argentine footballer Emiliano Sala's body is to be returned to Argentina on Friday, the mayor of his hometown of Progreso, Julio Muller, told AFP Tuesday.Sala's body was recovered from plane wreckage in the English Channel last week. He was flying to his new team, English Premier League side Cardiff City, ...

Cricket »

BD lose to NZ in 1st ODI

Sports Reporter :Bangladesh lost to New Zealand by eight wickets in the first One Day International (ODI) match at Napier in New Zealand on Wednesday.Electing to bat first, Bangladesh scored 232 off 48.5 overs.In reply, New Zealand reached the winning target making 233 for the loss of two wickets when ...

International »

Trump says not `happy` with border deal but shutdown unlikely

President Donald Trump indicated Tuesday that he will walk back his threat to shut the government even if he does not get all the money he has demanded for building a wall along the US-Mexican border.Although Trump left enough wiggle room to keep the country guessing, he appeared to be ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news