০৬:২৮ অপরাহ্ন, শুক্রবার, ২৯ মার্চ ২০২৪

Increased deposits in banks, ebb in loan disbursement

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  • আপডেট: ০৮:৫০:০৫ অপরাহ্ন, বৃহস্পতিবার, ২৫ ফেব্রুয়ারী ২০২১
  • / ৪১৬২ বার দেখা হয়েছে

Corona loan growth slows to 7.8 per cent
>> Deposits rise to 12.89 per cent
>> Human savings are on the rise, banks are not getting customers to lend

Although the epidemic has not decreased, trade and commerce have not returned to normal. Imports and exports have returned to normal after the recession. As a result, entrepreneurs do not want to take the risk of investing in new cars due to various uncertainties. This has reduced the demand for loans. However, the picture is different for customers.

Bankers say the epidemic has led most banks to take precautionary measures in investing. On the other hand, traders are trying to keep the business afloat in the current situation. Many are shrinking existing businesses to survive the crisis. Entrepreneurs are now reluctant to take new risks in such a situation. Due to this, the banks are not getting customers to give loans. As a result, the flow of debt has slowed down.

However, the reverse is true. Industry insiders say Corona has reduced costs in many areas. Again, thinking about future uncertainties, savings are increasing. He is depositing money in the bank through digital system. Due to these reasons, deposits have increased.

According to the latest data from Bangladesh Bank, at the end of December 2020, the overall credit growth rate of the banking sector stood at 7.8 percent. In this case, the loan growth of state-owned banks is 7.70 percent. The growth rate of credit of private banks is 7.4 percent. The growth of foreign banks has come down to negative 2.24 percent.

It is learned that many banks are not going for new investments now. The amount of loan that is being given is very careful. Because, the debt is not being recovered. This is reducing the investment capacity of the bank. Most of the banks’ investments have fallen below the central bank-bound loan-to-deposit ratio due to the decline in new investment.

According to the Central Bank’s updated data, the loan-to-deposit ratio (ADR) of seven banks, including Islami Wing, is higher than the target set. The ADRs of the remaining 51 banks are within the prescribed limits. It has been observed that the ADRs of Agrani, Rupali, Sonali, Standard Chartered Bank and City Bank NA are below 60 per cent.

It is learned that the limit on how much banks can invest is set by the central bank. Earlier, each bank could invest 75 per cent of the total deposits. In other words, he could invest 75 rupees with a deposit of 100 rupees. To increase the investment capacity of banks, it was increased by 2 per cent from the central bank last year. It is said that from now on, conventional banks will be able to invest Tk 6 on a deposit of Tk 100. On the other hand, banks operated under Islamic Sharia law will be able to invest Rs 92. According to the latest data from Bangladesh Bank, the loan-to-deposit ratio of most of the private banks is below 80 percent.

According to the latest figures from Bangladesh Bank, the bank has not been able to meet the target set by the monetary policy announced in July. At the end of last December, the growth of loans in the private sector has been 7.36 percent.

Abdul Halim Chowdhury, the recently retired managing director of Pubali Bank, said most of the products produced in Bangladesh are exported to Europe and America. But Corona’s influence is still going on in these countries. They are not ordering any products. There are also examples of cancellation of old orders. The overall investment in the country has also come down due to declining demand for the product. That is why the loan-to-deposit ratio has come down below the prescribed limit.

The managing director of another bank, who did not want to be named, said it was not just the investment that had declined. Government incentive money is coming to the banks. So all the banks now have extra liquidity. Moreover, large customers are now using offshore banking funds. Most of the distributions in the country are micro loans. In such a situation, it is very normal for the overall investment and debt-to-deposit ratio to decline.

According to the Bangladesh Bank, at the end of December 2020, the total deposits of the banks stood at 14 lakh 14 thousand 522 crore. On the other hand, the total debt stands at 11 lakh five thousand 61 crore rupees. At the end of December, the credit growth of banks stood at 7.8 percent and deposits increased by 12.79 percent.

According to the central bank, excess liquidity in the banking sector exceeded Tk 2.5 lakh crore at the end of last December. During the period under review, the amount of idle money in the banking sector stood at Tk 44,062 crore. This figure is higher than at any time in the past.

Many banks are looking for customers at low interest rates to lend in excess liquidity. State-owned Agrani Bank is looking for good customers to lend on easy terms at just 6 per cent interest.

Mohammad Shams-ul-Islam, managing director of Agrani Bank, told Dhaka Post that at present we have a liquidity of around Tk 10,000 crore. We are looking for good customers. We will not have a problem lending. Good customers who come will get loans. For those who have not yet become our customers, those who have a good reputation in the market, when they come, we will give loans at only 6 percent, which is 2 percent less than 9 percent.

 

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English Version

Increased deposits in banks, ebb in loan disbursement

আপডেট: ০৮:৫০:০৫ অপরাহ্ন, বৃহস্পতিবার, ২৫ ফেব্রুয়ারী ২০২১

Corona loan growth slows to 7.8 per cent
>> Deposits rise to 12.89 per cent
>> Human savings are on the rise, banks are not getting customers to lend

Although the epidemic has not decreased, trade and commerce have not returned to normal. Imports and exports have returned to normal after the recession. As a result, entrepreneurs do not want to take the risk of investing in new cars due to various uncertainties. This has reduced the demand for loans. However, the picture is different for customers.

Bankers say the epidemic has led most banks to take precautionary measures in investing. On the other hand, traders are trying to keep the business afloat in the current situation. Many are shrinking existing businesses to survive the crisis. Entrepreneurs are now reluctant to take new risks in such a situation. Due to this, the banks are not getting customers to give loans. As a result, the flow of debt has slowed down.

However, the reverse is true. Industry insiders say Corona has reduced costs in many areas. Again, thinking about future uncertainties, savings are increasing. He is depositing money in the bank through digital system. Due to these reasons, deposits have increased.

According to the latest data from Bangladesh Bank, at the end of December 2020, the overall credit growth rate of the banking sector stood at 7.8 percent. In this case, the loan growth of state-owned banks is 7.70 percent. The growth rate of credit of private banks is 7.4 percent. The growth of foreign banks has come down to negative 2.24 percent.

It is learned that many banks are not going for new investments now. The amount of loan that is being given is very careful. Because, the debt is not being recovered. This is reducing the investment capacity of the bank. Most of the banks’ investments have fallen below the central bank-bound loan-to-deposit ratio due to the decline in new investment.

According to the Central Bank’s updated data, the loan-to-deposit ratio (ADR) of seven banks, including Islami Wing, is higher than the target set. The ADRs of the remaining 51 banks are within the prescribed limits. It has been observed that the ADRs of Agrani, Rupali, Sonali, Standard Chartered Bank and City Bank NA are below 60 per cent.

It is learned that the limit on how much banks can invest is set by the central bank. Earlier, each bank could invest 75 per cent of the total deposits. In other words, he could invest 75 rupees with a deposit of 100 rupees. To increase the investment capacity of banks, it was increased by 2 per cent from the central bank last year. It is said that from now on, conventional banks will be able to invest Tk 6 on a deposit of Tk 100. On the other hand, banks operated under Islamic Sharia law will be able to invest Rs 92. According to the latest data from Bangladesh Bank, the loan-to-deposit ratio of most of the private banks is below 80 percent.

According to the latest figures from Bangladesh Bank, the bank has not been able to meet the target set by the monetary policy announced in July. At the end of last December, the growth of loans in the private sector has been 7.36 percent.

Abdul Halim Chowdhury, the recently retired managing director of Pubali Bank, said most of the products produced in Bangladesh are exported to Europe and America. But Corona’s influence is still going on in these countries. They are not ordering any products. There are also examples of cancellation of old orders. The overall investment in the country has also come down due to declining demand for the product. That is why the loan-to-deposit ratio has come down below the prescribed limit.

The managing director of another bank, who did not want to be named, said it was not just the investment that had declined. Government incentive money is coming to the banks. So all the banks now have extra liquidity. Moreover, large customers are now using offshore banking funds. Most of the distributions in the country are micro loans. In such a situation, it is very normal for the overall investment and debt-to-deposit ratio to decline.

According to the Bangladesh Bank, at the end of December 2020, the total deposits of the banks stood at 14 lakh 14 thousand 522 crore. On the other hand, the total debt stands at 11 lakh five thousand 61 crore rupees. At the end of December, the credit growth of banks stood at 7.8 percent and deposits increased by 12.79 percent.

According to the central bank, excess liquidity in the banking sector exceeded Tk 2.5 lakh crore at the end of last December. During the period under review, the amount of idle money in the banking sector stood at Tk 44,062 crore. This figure is higher than at any time in the past.

Many banks are looking for customers at low interest rates to lend in excess liquidity. State-owned Agrani Bank is looking for good customers to lend on easy terms at just 6 per cent interest.

Mohammad Shams-ul-Islam, managing director of Agrani Bank, told Dhaka Post that at present we have a liquidity of around Tk 10,000 crore. We are looking for good customers. We will not have a problem lending. Good customers who come will get loans. For those who have not yet become our customers, those who have a good reputation in the market, when they come, we will give loans at only 6 percent, which is 2 percent less than 9 percent.

 

Read more: