Govt’s NSC sale reaches 83pc of annual target in five months

Staff Correspondent | Published: 00:00, Jan 14,2019 | Updated: 11:40, Jan 14,2019

 
 

The government in just five months (July-November) collected Tk 21,661.93 crore from the sales of national savings certificates, which is 82.69 per cent of its target of collection for the entire fiscal year (2018-2019).
In the budget for FY19, the government set the target at Tk 26,197 crore.
In July-November of FY19, NSC sales increased by 2.31 per cent or Tk 489.86 crore compared with that of Tk 21,172.07 crore in the same period of the previous fiscal year, according to the latest Directorate of National Savings data.
DNS officials said people rushed for the NSCs as the instruments offered higher interest rates than the bank products.
The rates offered by the NSCs are between 11.04 per cent and 11.76 per cent.
Most of the banks offer 4-6 per cent interest rate against their deposit products with a view to reducing lending rate to facilitate investment following an initiative from the government high ups.
If the trend in NSC sales continues in the rest seven months of FY19, government’s fund collection from NSC sales might double of its annual target.
The government’s net borrowing from the savings certificates was Tk 46,530.30 crore in last fiscal year (2017-2018) against its revised target of Tk 44,000 crore for the fiscal year. The initial target for FY18 was Tk 30,150 crore.
At the end of November of FY19, the total outstanding NSC sales increased to Tk 2,59,428.45 crore from Tk 2,12,408.29 crore as of November of FY18.
In November, 2018, the net sales of NSCs, however, remained almost same at Tk 3,833.2 crore as its was in November, 2017 following the immediate past finance minister AMA Muhith’s stance to streamline the sales of NSCs from January this year amid high growth in their sales and debt liability getting heavy for the budget management.
A joint meeting of the national coordination council on the budget and macro-economy at the finance ministry held on November 27 discussed the option of seeking source of fund from the NSC buyers to check buying surge.
After the meeting, Muhith had told reporters that the sales of savings certificates would be streamlined from January.
He, however, did not say what measures would be taken to regulate savings certificates sales.
Bankers have been pressing the government to reduce interest rates offered by NSCs as a large portion of savings were diverted to those savings schemes from banks, creating liquidity crisis in the banks.
Earlier, the government had announced that it would not cut interest rates on NSCs before the national elections that held on December 30.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images