Bank interest rates to be single digit in one month: Muhith

Finance minister AMA Muhith said on Sunday that  interest rate for the banking sector will come down to single digit within one month.

"I am glad to know that bankers have taken a decision to bring down the interest rate to single digit within one month," he said, speaking as the chief guest at the annual conference of the Janata Bank at Sonargaon Hotel in the the capital. 

The finance minister said that the rate of interest has increased suddenly but the interest rate should be single digit.

The minister also said that the government has decided to allow state agencies to deposit 50 per cent of their funds with private banks, up from the existing ceiling of 25 per cent, to tackle liquidity crisis.

Among others, Bangladesh Bank Governor Fazle Kabir, financial institutions division senior secretary Md Eunusur Rahman, secretary-in-charge of the finance division Mohammad Muslim Chowdhury and Janata Bank Chairman Luna Shamsuddoha spoke on the occasion.

Fazle Kabir asked the banks to focus on small and medium loans instated of large loans as the rate of recovery of the small and medium loans are better than the large loans.

He called for making an action plan to reduce the losing branches of banks and creating good governance in all levels of banking.

Eunusur Rahman asked the state owned banks to provide the best customer services for creating a good image among the clients.

"The officials of the state owned banks are brilliant as they have been appointed through big competitions in the recruitment tests. So, they can fulfill the customer satisfaction easily," he added.

He also urged the banks to open more rural branches for mobilizing money of the grass root people.

Luna Shamsuddoha said Janata Bank is working for the welfare of the common people as it is providing banking services to the all classes of people across the country.

"We have taken various initiatives, including the use of blockchain, artificial intelligence and internet to provide international standard banking services to the clients," she added.