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Saturday, February 27, 2016, Falgun 15, 1422 BS, Jamadiul Awwal 17, 1437 Hijri

Clients investing on savings certificates, bonds due to cut in bank interest rate
DNC exceeds target in seven months
Moshiur Ahmed Masum
Published :Saturday, 27 February, 2016,  Time : 12:00 AM  View Count : 14

The Directorate of National Savings (DNC) has achieved 100 per cent annual target in seven months through selling saving instruments and bonds, officials said.
They said the continuation of public investment on National Saving Certificates (NSCs) and Bonds gradually increased from last Fiscal Year (FY) 2014-2015, which continued in the current FY.
DNC data showed that the net investment in the savings instruments stood at around Tk 16,000 crore in the seven months of FY2015-16, while target was Tk 15,000 crore for the whole fiscal.
Comparing the first seven months of two FYs the investments on savings tools and bonds have increased by 5.48 per cent to Tk 16,602.97 crore in July-January period of current fiscal from Tk 15,738.94 crore during the same period of the last fiscal.
The data also showed that in the month of January the net investment has increased by 26.65 per cent to Tk 3,297.38 crore from that of Tk 2,603.45 crore in the same month a year ago.
Officials said in spite of interest cut on May last year on NSC clients are rushing to invest on NSCs and bonds over the months in the last two years. As a result the government may not only fulfill but also exceed the targeted lone from NSCs which are used to minimize budget deficit.
The government faced pressure to pay interest to the clients who invested in the NSCs in recent years as the interest rate for the savings tools was between 12.59 per cent and 13.45 per cent before the latest rate cut, the officials said.
According to data released recently by DNS, savings instruments worth Tk 28,093.35 crore were sold through banks, national savings bureau and post offices in the seven months of the current fiscal whereas the sales of the NSCs in the seven months of last fiscal were Tk 22,945.16 crore.
The DNC total sold NSCs and bonds worth Tk 28,093.35 crore while Tk 11,490.56 crore was paid in interests.
The net investment in the savings tools posted a record Tk 28,732.64 crore in the last fiscal year as the clients invested a lot in the tools due to lower rate of interest on banks deposit products, the DNS officials said.

Editor : Iqbal Sobhan Chowdhury
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