The net sales of national savings certificates stood at Tk 15,642.36 crore in the July-October period of the current fiscal year 2020-2021 against the government’s target of Tk 20,000 crore for the entire fiscal year.
The sales in the four months account for 78.21 per cent of the annual target due to a buying spree as people went for buying the high-yield investment tools amid a plunge in bank deposit rates, experts said.
According to the latest National Savings Directorate data, the net sales of NSCs in the four months of FY21 is 183.79 per cent or Tk 10,341.34 crore higher than the Tk 5,512.02 crore in sales in the same period of the previous fiscal year.
In July-October of FY21, the gross sales of NSCs stood at Tk 37,195.39 crore and the payment of principal amounts Tk 21,553.04 crore.
Given the existing trend, the NSC sales in the current fiscal year would be far higher than the government’s annual target and the volume may exceed Tk 40,000 crore at the end of the year, a Bangladesh Bank official said.
The NSD data also showed that the sales of NSCs increased by 390.25 per cent or Tk 3,211.58 crore in October 2020 against the sales of Tk 822.95 crore in the same month of 2019.
In October, the gross sales of NSCs stood at Tk 9,249.86 crore and the payment of principal amounts Tk 5,215.33 crore.
A senior banker said that a sharp increase in investment even after tightening the taxation policy indicated that there was no better investment option for people in the country.
After the implementation of a 9-per cent lending rate cap in April 2020 for banks, the deposit rate in almost all the banks has come below 6 per cent while several banks are offering as low as 2 per cent against deposits.
Yield against investments in the savings certificates still remains as high as 12 per cent, making it lucrative to the savers even after the payments of taxes at the rate of 10 per cent on the returns.
With the investment climate still remaining cloudy as the coronavirus situation is yet to be brought under control, different entities might have preferred to park their funds in safe and high-yield instruments rather than keeping those in banks, experts said.
The sales of NSCs grew from the very beginning of FY21 after witnessing a dismal FY20.
In FY20, the net sales of NSCs plunged to Tk 14,428 crore from Tk 49,939 crore in the previous year.
In the budget for FY21, the revenue collection target has been set at Tk 3,78,000 crore, leaving deficit of Tk 1,90,000 crore.
For deficit financing, the government has planned to collect Tk 1,09,983 crore from the domestic sources including sales of NSCs.
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