The net sales of national savings certificates soared in the July-September period in the financial year 2024-25, as many depositors turned to such stable, low-risk investment instruments amid concerns over the health of country鈥檚 banking sector.
Bangladesh Bank data showed that net sales of NSCs hit Tk聽8,332 crore in July-September 2024, marking a recovery from a negative balance of Tk聽3,381 crore in June 2024.
It was Tk聽1,264 crore negative in the same period in FY24.
Throughout the FY聽2023-24, NSC sales were generally negative, reflecting the impact of severe inflationary pressures on household budgets.
By the end of that financial year, the net sales had reached a negative Tk聽21,124 crore compared with those of a negative Tk 3,295 crore in FY聽2022-23.
This negative trend occurred as principal repayments outpaced new sales, draining funds from the government鈥檚 exchequer.
Bankers said that the negative trend reflected that people were relying on their savings amid acute and prolonged inflationary pressures.
Rising living costs, fuelled by an inflation rate hovering at 10 per cent since early 2023, left households with less surplus incomes to allocate long-term investments for household expenditures, they said.
The total outstanding investment in NSC reached Tk聽3,54,601 crore in September, down from Tk聽3,66,128 crore in the same period of the previous year.
Bankers attributed the previous decline in NSC investments to a reduction in interest rates by 1-2 per cent on all savings certificates in September 2021. The introduction of a maximum limit and the mandatory inclusion of national identification documents during the purchase of savings certificates had further exacerbated the decline, they said.
The Bangladesh Bank has also made it mandatory to submit proof of the previous year鈥檚 income tax returns for investments in savings certificates worth more than Tk 5 lakh.
