Economic Reporter :
The number of banks lending at single digit rose to 24 in September this year as the weighted average lending rate continued to fall in the market
The average lending rate in the market came down to 10.15 percent in September which was 11.48 percent in the same period a year back, according to Bangladesh Bank latest data.
Excess liquidity has pushed the banks to cut their lending rates for enhancing the credit demand, said a senior executive of Bangladesh Bank.
Though the lending rate is still in double digit, most banks are, however, offering loans at single digit to their good clients, he said. The average interest rate on advance for the state banks came down to single-digit of 9.12percent in September, which was 10.19percent in the same period of the last year.
Of the six state-owned commercial banks, four are lending at single digit. The banks are- Agrani, Sonali, BASIC and Bangladesh Development Bank. Out of the state-owned banks, BASIC bank is now lending at lowest 5.73percent as of September compared to 8.7percent in the same period of the last year.
Though the largest state-owned Sonali Bank is lending at single digit of 8.79percent, the rate is higher from 8.39percent in the same period a year back.
Sonali Bank raised its lending rate slightly as it is reluctant to lend after the Hallmark loan scam. On the other hand, BASIC Bank has cut its lending rate drastically to boost loan disbursement to minimise loss by expanding business, said a senior executive of Bangladesh Bank.
The two specialised banks Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank have also slashed down their lending rates at single-digit.
The number of banks lending at single digit rose to 24 in September this year as the weighted average lending rate continued to fall in the market
The average lending rate in the market came down to 10.15 percent in September which was 11.48 percent in the same period a year back, according to Bangladesh Bank latest data.
Excess liquidity has pushed the banks to cut their lending rates for enhancing the credit demand, said a senior executive of Bangladesh Bank.
Though the lending rate is still in double digit, most banks are, however, offering loans at single digit to their good clients, he said. The average interest rate on advance for the state banks came down to single-digit of 9.12percent in September, which was 10.19percent in the same period of the last year.
Of the six state-owned commercial banks, four are lending at single digit. The banks are- Agrani, Sonali, BASIC and Bangladesh Development Bank. Out of the state-owned banks, BASIC bank is now lending at lowest 5.73percent as of September compared to 8.7percent in the same period of the last year.
Though the largest state-owned Sonali Bank is lending at single digit of 8.79percent, the rate is higher from 8.39percent in the same period a year back.
Sonali Bank raised its lending rate slightly as it is reluctant to lend after the Hallmark loan scam. On the other hand, BASIC Bank has cut its lending rate drastically to boost loan disbursement to minimise loss by expanding business, said a senior executive of Bangladesh Bank.
The two specialised banks Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank have also slashed down their lending rates at single-digit.
