State banks, which were the traditional lenders in the call money market, have now become the biggest borrowers due to growing financing to the government.

According to Bangladesh Bank data, Tk 6,237.50 crore was traded in the inter-bank call money market yesterday at 12-15 percent interest rates.

Of the total amount, Tk 2,240 crore was borrowed by four state banks -- Agrani, Janata, Sonali and BASIC.

Sixteen private commercial banks (PCBs) borrowed Tk 3,187 crore and 14 non-bank financial institutions (NBFIs) Tk 651.50 crore.

Of the PCBs, Prime Bank borrowed the highest amount, Tk 476 crore, followed by Mercantile Bank Tk 400 crore, National Bank Tk 284 crore and Eastern Bank Tk 275 crore.

“Although the call money rate tends to be high it is still at a tolerable level,” said Helal Ahmed Chowdhury, managing director of Pubali Bank, a big lender in the overnight money market.

Pubali yesterday lent Tk 496 crore, the second highest after Dutch-Bangla Tk 1,440 crore, HSBC Tk 1,216 crore, Trust Bank Tk 765 crore and Citibank NA Tk 676 crore.

Of the NBFIs, Delta Brac Housing was the top lender in the market with Tk 88 crore.

Unlike previous years, the inter-bank call money market looks less volatile ahead of this year's Eid-ul-Fitr festival.

Although cash withdrawal from banks has been increasing for the past two weeks, the call money rate did not rise proportionately due to the central bank's prudent role, treasury officials said.

The central bank yesterday injected fresh funds worth over Tk 14,000 crore through auction of repurchase agreement (repo) and special liquidity support to the primary dealer banks.

“State-owned banks are the net borrowers in the market as our funds are stuck in government instruments and with the petroleum corporation for financing fuel imports,” said a senior treasury official of Sonali Bank, the largest bank in the country in terms assets and network.

The Daily Star/Bangladesh/  13th Aug 2012