Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Wednesday, September 26, 2018 11:42:24 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

Sports »

Law leaving West Indies to coach Middlesex

Stuart Law is leaving his role as West Indies head coach to take over at Middlesex from next season, the English county announced on Monday.The former Australia batsman has signed a four-year deal and will begin duties in January following West Indies' tours of India and Bangladesh."It is a great ...

Editorial »

The audacity of Myanmar is only can be answered by an united int`l community

MYANMAR'S powerful army chief says the United Nations has no right to interfere in his country's sovereignty, a week after UN investigators called for him and other top generals to be prosecuted for "genocide" against the Rohingya. Min Aung Hlaing's comments to an army newspaper were his first public reaction ...

City »

BNP Standing Committee Member Barrister Moudud Ahmed, among others, at a youth rally organised by Jatiyatabadi Projanmo '71 at the Jatiya Press Club on Tuesday demanding release of BNP Chief Begum Khaleda Zia and election under impartial caretaker government.

Business & Economy »

DORP Founder Nouman attends 3rd World Congress in USA

Business Desk :AHM Nouman the Gusi Peace Prize International Laureate and Founder of Development Organization of the Rural Poor (DORP) will attend the 3rd world congress on Mother and Neonatal Nursing Care in Chicago, USA. The two-day long congress will be held on September 26-27, 2018, says a media release. ...

International »

After N Korea, Trump targets Iran with `maximum pressure`

AFP, United Nations :One year after mobilizing the international community against North Korea, Donald Trump is trying to force another arch enemy to the negotiating table by targeting Iran with a similar campaign of "maximum pressure."But if North Korea's leader Kim Jong Un has seen his standing with the US ...

International »

US Judge may dismiss Stormy Daniels lawsuit against Trump

Reuters, Los Angeles: President Donald Trump likely had a free-speech right to make a Twitter comment disputing allegations by adult film actress Stormy Daniels, a federal judge said on Monday, indicating he was inclined to dismiss her defamation lawsuit against Trump.Daniels, whose real name is Stephanie Clifford and who has ...

Entertainment »

Ekta Kapoor`s mantra in selecting platforms for content!

Touted as content czarina, Ekta Kapoor is undoubtedly the only female producer who has carved her niche in the industry with utmost excellence. Ekta Kapoor is currently riding high as she is juggling between multiple projects across various mediums. Ekta has set a benchmark when it comes to daily soaps. ...

Editorial »

Maldives' people reject authoritarian rule and voted for democracy

MALDIVES strongman President Yameen Abdul Gayoom conceded that he lost Sunday's election to his challenger Ibrahim Mohamed Solih, in a speech broadcast live on television Monday, according to the international media. Mr Yameen congratulated Solih and said, "I know I have to step down now."  The Election Commission said voter ...

Cricket »

'Rashid is best but not unplayable' says Mahmudullah

Mahmudullah Riyad sorted out a vigorous 74 against Afghanistan rescuing Bangladesh from a plausible downfall.Mahmudullah Riyad and Imrul Kayes stood tall in the middle when the team was languishing losing all five in the top order in a score of 87 on the board. The duo added 128 runs in ...

International »

Thousands attend funeral for Iran attack dead

AFP :Tens of thousands of mourners attended a funeral on Monday in the southwestern Iranian city of Ahvaz for soldiers and civilians killed in an attack on a military parade.Four militants attacked the Saturday parade marking the start of the 1980-1988 Iran-Iraq war, spraying the crowd with gunfire and killing ...

City »

Prime Minister Sheikh Hasina addressing a reception accorded to her by the expatriate Bangladeshis at a hotel in New York on Sunday.

Entertainment »

Mehazabien, Apurba in Puja special play

Sheikh Arif Bulbon :Popular pair of the small screen of present time Mehazabien Chowdhury and Ziaul Faruk Apurba worked together in a special play of Durga Puja for the first time. Title of the play is Priyo Tumi. Directed by Mahmudur Rahman Himi story of the play is written by ...

Editorial »

Attack on Iran`s elite guards

IRANIAN Supreme Leader Ayatollah Ali Khamenei accused US-backed Gulf Arab states of carrying out a shooting attack on a military parade that killed 25 people, almost half of them members of the country's elite Revolutionary Guards. Khamenei ordered security forces to bring to justice those responsible for one of the ...

Sports »

Bertens defeats Tomljanovic to secure Korea Open win

AFP, Seoul :Kiki Bertens defeated Australia's Ajla Tomljanovic in the Korea Open final on Sunday, securing her third WTA Tour singles title of the season to continue her career-best year.The second-seeded Bertens came back from break down in the deciding set to defeat the Australian in two hours and 22 ...

International »

World leaders gather at UN under threat from unilateralism

AP, United Nations :With rising unilateralism challenging its very existence, the United Nations convenes its annual meeting of world leaders Monday and will try once more to tackle problems together as a community of nations, addressing threats ranging from Mideast conflicts to the effects of global warming - and also ...

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