# Tk1, 541 cr negative in February
# Tk8891 cr negative in July-February
Various schemes of savings certificates for lower-middle class, limited income people, women-disabled and retired employees were once very lucrative. Even people had more confidence in investing in savings certificates than banks. But now people are turning away from that savings certificate.
For several months, they have to pay more than selling savings certificates. Investment in savings certificates has also decreased in February, the second month of 2024. The previous interest and principal had to be paid more than what was sold.
Talking about this, an official of the central bank told The Daily Post that for the last few months, we have to pay more than selling savings certificates. There are a few reasons behind this. People are breaking savings certificates as the reinvestment facility of customers is closed. Those who bought savings certificates for five years in 2019 are now breaking them. Because there will no longer be automatic investment as before.
He also said another big reason is interest rates. At present, the interest in the bank is higher than the savings certificate. Depending on the tenure and amount of money, there is a chance of getting a maximum profit of 11.76 percent in savings certificates. However, those who have more than Tk 15 lakh invested in this sector, their profit decreases. On the other hand, some banks are offering deposits at high interest rates due to liquidity crisis. Customers are withdrawing money from savings certificates and depositing them in the bank in the hope of more profit.
The official said the government will not be able to take any loan from savings certificates like last year if it continues to pay more than the sale.
According to the latest updated report of Bangladesh Bank, in February, the eighth month of the current financial year 2023-24, the amount of interest-principal payment was Tk 1,541.44 crore more than the sale. That is, the net sale of savings certificates decreased by Tk 1,541.44 crore in February. Even in February 2023, there was a negative trend in the sale of savings certificates. At that time, the previous interest-principal was paid more than the sale of Tk 440 crore 0.8 lakh. That is, in February last year, the net sale of savings certificates decreased by Tk 440 crore 0.8 lakh.
To meet the budget deficit, the government had set a target of borrowing Tk 35,000 crore from savings certificates in the main budget for the fiscal year 2022-23. Later, in the revised budget, the target was reduced to Tk 20,000 crore, but the government could not take any loan from this sector. In the current 2023-24 fiscal year, the government's borrowing target from savings certificates has been further reduced to Tk 18,000 crore. The concerned people say that the situation says that the government will not be able to take any loan from this sector this time.
According to the central bank report, the sale of savings certificates in the first eight months (July-February) of the current 2023-24 fiscal year is also in negative trend. In July-February of the current fiscal year, the net sale of savings certificates is Tk 8,891.77 crore (negative). That is, in these eight months, Tk 8 thousand 891 crore 77 lakh more has been paid as interest and principal than the amount of savings certificates sold.
Even in the first eight months of the 2022-23 fiscal year, the sale of savings certificates was in a negative trend. At that time, the previous interest and principal payment was more than the sale of Tk 3,509 crore 51 lakh.
According to the report, the sale of savings certificates was in a negative trend in the previous month January, the seventh month of this year. In that month, Tk 1,287.10 crore was paid more as interest and principal than the sale.
Industry stakeholders said the standard of living is being hampered due to high inflation. People with limited income are in great trouble. Purchasing power is decreasing. He is dealing with the situation by reducing consumption and giving extra money in his hand. Although inflation has been brought down to a tolerable state in different countries of the world, Bangladesh has not been able to get out of high inflation due to dollar crisis and various syndicates. In addition to imported goods, people have to buy locally produced products at abnormal prices. In most cases, due to lack of income, they have to break the savings and run the family expenses. Besides, due to the reduction of interest rates and the imposition of various restrictions, the sale of the safest investment savings certificate of the common people has decreased. That's why net sales are negative.
According to the data, in December, the sixth month of the current 2023-24 financial year, the previous interest-principal payment was Tk 2,204.32 crore more than the sale. That is, the net sale of savings certificates decreased by Tk 2,204.32 crore in December. In the previous month, the fifth month of November this year, the sale of savings certificates was in a negative trend. In that month, Tk 1,553 crore was paid more as interest and principal than the sale. In addition, in October, the fourth month of the current financial year, the amount of interest and principal payments was 10.4 billion more than the sale. That is, the net sale of savings certificates in October was less than Tk 1,040 crore.
In addition, in September, the third month of the current 2023-24 financial year, the amount of interest-principal payment of savings certificates sold earlier was Tk 148 crore more than the sale. That is, the net sale of savings certificates decreased by about Tk 148 crore in September.
According to the Bangladesh Bank report, the sale of savings certificates increased in the first two months of the current financial year. Net sales in the first month of July were Tk 3,250 crore. And in the second month of August, the sales figure was Tk 2,312.33 crore. But sales for the new fiscal year, which started on July 1, hit again in September.
Besides, savings certificates worth Tk 80,858.62 crore were sold in 12 months in the 2022-23 fiscal year (July-June). On the contrary, it has paid Tk 84,154 crore 56 lakh as interest-principal. That is, with the amount of savings certificates sold, it was not possible to pay the interest and principal of the savings certificates previously invested by the customers. On the contrary, the government has repaid Tk 3,295.94 crore by taking loans from the treasury and the banking system.
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