Six-month extension to bring down ADR limit

FE Online Desk | Published: February 20, 2018 21:24:37 | Updated: February 21, 2018 11:27:31

The central bank has extended time for banks by six months to bring down respective advanced deposit ratio (ADR) within the new limit declared on January 30.

A Bangladesh Bank (BB) circular on Tuesday said, "The banks will have to bring down ADR within the new limit by December 31, 2018 instead of the previous deadline of June 30."

BB reduced the limit of the ADR for banks recently with a view to preventing their aggressive lending and ensuring quality investments for the country's development.

According to BSS, the circular says that the BB has fixed the ADR limit to 89 per cent for the Shariah-based Islamic banks and Islamic banking wings of the conventional banks from 90 per cent while 83.50 per cent for the conventional banks from 85 per cent.