Non-Performing Loan (NPL) is the key challenge to reduce bank’s interest rate, DCCI leaders said. They came up with this statement while talking to reporters at a press briefing on ‘current state and future outlook of Bangladesh economy’ at DCC office at Motijheel in the city.
They said most of the banks is taking interest on lending money between 11 percent and 15 percent which hampered businesses and businessmen passed critical moment for high interest rate. They said, “The government is trying to implement single digit lending rate which is encouraging. To implement this, inflation control, reduced National Savings Certificate interest rate and good governance need to be ensured.”
“A separate mechanism can be developed by the Central bank to identify willful and unintentional defaulters which will help banks to take necessary safeguard against NPL, they added. Dhaka Chamber of Commerce and Industry (DCCI) President Osama Taseer said He said, “The country’s exports as well as businesses are increasing, but businessmen are not good.”
“The main reason is that, businessmen cannot make profit from their businesses as high interest rate and reducing demand for global products pushed cost of doing business up, which are lagging behind in competition in the world market,” he mentioned. The government is trying to implement single digit lending rate which is encouraging, the bank’s interest rate are gradually increasing as banks cannot reduce NPL, he added.
“The government should find out the main obstacle to control the NPL, he said adding that, otherwise, it is not possible to reduce interest rate in single digit.” In the Banking sector, in January-June 2019, the disbursement of total industrial-term loan meagerly increased by 0.97 percent compared to the same period in 2018. In addition, total Tk 19,905.28 crore SME loan was disbursed during the time.
