Net sales of savings tools up 8.0pc in nine months

Govt considering review of yield rates

Arafat Ara | Published: May 14, 2019 09:51:26 | Updated: May 17, 2019 13:17:09

The net sales of state-run savings instruments rose by more than 8.0 per cent in nine months of the current fiscal year (FY), compared to the same period of the previous fiscal.

According to the Department of National Savings (DNS) data, the net sales of savings tools in the July-March period of FY 2018-19 stood at Tk 397.33 billion, up from Tk 367.09 billion in the corresponding period of FY 2017-18.

The sales of savings schemes have surged in recent years due to their higher yield rates, officials said.

At the same time, the government's interest payments have also increased by more than 23 per cent in the nine months of this fiscal, the data shows.

The government spent Tk 181.54 billion on interest payments in the July-March period of current FY, up from Tk147.33 billion in the same period of FY 2017-18, according to the official statistics.

The government, however, is now considering reviewing the yield rates of savings schemes.

At the inaugural ceremony of the 'Savings Week-2019' held recently, National Board of Revenue (NBR) Chairman Mosharraf Hossain Bhuiyan said the government has a plan to cut the yield rates of state-owned savings certificates.

To this end, the government has also formed a committee to look into various issues, including the interest of small savers.

Officials, however, said the sales of the savings tools will see a decline in the coming months, as the authorities have introduced online system for the sale of the savings instruments.

The new system under which TIN has been made mandatory for the savers has already made an impact. Less savers are now buying savings instruments. Moreover, they have to submit national identification (NID) numbers while purchasing government savings certificate.

So, many savers now find it difficult to purchase the savings schemes, the officials said.

Presently, the online system has been introduced only in Dhaka city. It will be expanded across the country gradually.

Meanwhile, the government has revised the target of its net borrowing from savings instruments for FY 2018-19 upward to Tk 450 billion from Tk 261.97 billion.

The DNS sells four types of savings certificates and the yield rates are up to 11.76 per cent. It also sells different types of bonds to local and expatriate Bangladeshis.

Currently, around 20 million savers have invested in this sector.



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