Interest rates have fallen, financial institutions are losing deposits

Many non-banking financial institutions are depositing customers who are not getting their refunds on time. Banks or various corporate institutions are not able to deposit money there and withdraw it on time. In such a situation, despite high interest rates or various offers, deposits are decreasing in the financial institutions sector. At the end of June, the total deposits of non-bank financial institutions stood at 42 thousand 753 crores. Compared to three months ago, which is 282 crore less. 787 crore decreased compared to last December. At the same time last year ie at the end of June, the deposit account was Tk 42 thousand 129 crores. Those involved said that with the connivance of directors and officers of various financial institutions, a lot of money has been taken out in the name of loans. Due to which the financial base of this sector has become very inefficient. Although the situation was bad earlier, it has become worse after the initiative to end People's Leasing in 2019.

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Within a few days, the issue of embezzlement of around 35000 crore taka came to the fore by dominating various institutions of NRB Global and Reliance Finance's former MD Prashant Kumar (PK) Halder. All in all, most of the financial institutions are now in cash crunch. Deposits are gradually decreasing due to the reduction of assurance towards this sector. According to the information of Bangladesh Bank, the term deposits of financial institutions decreased by 806 crores to 42 thousand 99 crores in the last 6 months. Other deposits decreased by Tk 11 crore to Tk 282 crore. Only the reinvestment account has increased by Tk 7.54 lakh to Tk 372 crore compared to last December. Most of the branches of financial institutions are in Dhaka. That is why 39 thousand 648 crores or 92.52 percent of the total deposits of these institutions came from Dhaka division. The 2nd highest Chittagong division has deposits of Tk 1,864 crore. 487 crores from Rajshahi division, 324 crores from Khulna, 239 crores from Sylhet, 800 crores from Mymensingh and 56 crores from Barisal and Rangpur divisions.

In addition to decreasing deposits of financial institutions, the debt position is increasing very slowly. At the end of last June, the total debt status of financial institutions stood at 67 thousand 27 crores. In the first 6 months i.e. at the end of December which was 66 thousand 988 crores. This means that the debt position has increased by only Tk 463 crore as compared to December. Of the total loans of these institutions, 56 thousand 574 crores or 84.40 percent of loans have been distributed to the coating department.

An official of Bangladesh Bank told Samakal that the loan and deposit balance of financial institutions is published by adding interest on a quarterly basis. Even if we calculate the average interest of 11 percent on the amount of debt existing in last June, the interest comes on an average of 614 crores every month. This means that in 6 months, 3.5 thousand crore rupees have been added due to interest. In other words, loans of financial institutions are actually decreasing as well as deposits.

It is known that many complaints of non-return of deposits by some financial institutions are going to the Central Bank. The entire sector is under pressure due to non-return of some financial institutions. Along with ordinary depositors, various corporate institutions, banks or different financial institutions are not keeping money in these institutions as before. Also, the loans disbursed due to various irregularities are not coming back on time. Due to which the financial institutions are not getting deposits as expected even after reducing the high interest rates. According to available information, many financial institutions are offering 9 to 12 percent interest on three-month term deposits.