Savings certificates sales exceed Tk500cr again in May FY23

Savings certificates sales crossed the Tk500-crore mark for the second time in May of the recently ended FY23. According to the Bangladesh Bank data, savings certificates worth Tk551 crore were sold in May. Earlier, savings certificates worth TK581 crore were sold in April this year. For those two consecutive months customers purchased more savings certificates than they redeemed. The net sales of saving certificates for the first 11 months of FY23, however, stood negative at Tk3,029 crore as the government borrowed some Tk74,700 crore against the repayment of Tk77,700 crore during the period. The government set a target of borrowing Tk35,000 crore from the savings tools in FY23, which was later reduced to Tk20,000 crore. According to the finance ministry, the interest costs for savings tools were initially estimated at Tk42,675 crore for FY23, which was later increased to Tk45,100 crore in the revised budget.

Source: https://www.tbsnews.net/economy/savings-certificates-sales-exceed-tk500cr-again-may-fy23-660130

BAFEDA asked Banks not to sell dollar for over Tk 109

The Bangladesh Foreign Exchange Dealers’ Association (Bafeda) has asked banks in the country not to sell US dollars to importers for beyond Tk 109 per greenback as some lenders recently breached the rule. The Bafeda, which is a platform for banks to monitor the country’s foreign exchange market, issued a circular on July 3, asking them to follow the rules strictly. It was observed that some banks got more than Tk 109 for each dollar sold to importers, the Bafeda said in the notice. The Bafeda and Association of Bankers, Bangladesh (ABB), a platform for managing directors of banks in the country earlier took a decision to sell each US dollar for a maximum of Tk 109. As per the agreement between the two platforms, banks are allowed to mobilise the greenback from remitters by offering a maximum of Tk 108.5 per US dollar apart from the 2.5 per cent incentive given by the government. Besides, lenders can offer a maximum of Tk 107.5 for each US dollar while purchasing the greenback from exporters.

Source: https://www.thedailystar.net/business/economy/news/banks-told-not-sell-dollar-over-tk-109-3361216

Bank deposits on the rise

Deposits grew by 8.81% in May, the highest in the last 11 months despite the decade’s highest inflation as customer confidence in banks returned. Deposits in banks stood at Tk15.63 lakh crore at the end of May with new deposits of Tk15,300 crore, according to central bank data. Sector insiders said in November and December last year, there were many cases of disbursing loans by violating rules in several banks. Due to this, many customers started withdrawing their deposits from the banks. As a result, bank deposit growth fell to 5.67% in December. The central bank said loan growth in the banking sector fell to 11.72% in May. It has been on a downward trend for the past few months. Loan growth was 13.26% last February. However, the creation of new loans also decreased due to the decrease in opening of import letters of credit (LCs).

Source: https://www.tbsnews.net/economy/banking/bank-deposits-rise-660118