DHAKA: Deposits in banks marked about 20 percent rise in the past one year, thanks to the central bank’s policy support that encouraged savings, remittance inflow and discouraged unnecessary spending on credit.

Data released by the Bangladesh Bank (BB) showed that the total deposit in the banking sector in September soared to taka 5,01,260.08 crore, which was 19.69 percent higher than the deposit of taka 4,29,985 crore in the corresponding period last year.

“The deposit increased due mainly to effective monitoring on banking sector, flexible monetary policy and new loan rescheduling guideline,” BB’s executive director SM Moniruzzaman told BSS.

He also attributed the achievements to the banks for their inclusive financial activities like agro-financing, SME financing and lending to women entrepreneurs and eco-friendly projects.

The central banker explained that the inclusive financing made loan recovery easier and faster than the lending to the usual credit portfolios of banks such as trade financing and financing to urban projects.

Vice chairman of the Association of Bankers, Bangladesh (ABB) and managing director of Pubali Bank Helal Ahmed Chowdhury said higher inflow of remittance coupled with lower import of food items and declining inflation stabilized the liquidity positions in banks.

The deposit in private bank was taka 3,19,653.95 crore at the end of September when it was taka 1,25,393.58 crore in four state-owned commercial banks and was taka 23,864 crore in four specialized banks in public sector. —BSS

News: Daily Sun/Bangladesh/02-Nov-12