NSC Sales Witness Negative Growth for the First Time in FY23

Economic Tag: Central Bank, Govt.

The net sales of National Savings Certificates (NSCs) in Bangladesh have seen a significant decline for the first time in the financial year 2022-23 (FY23) due to a combination of factors. According to data from the Bangladesh Bank, NSC sales were Tk 3,295 crore in the negative, a notable drop from the Tk 19,915.75 crore positive sales in the previous financial year.

The government’s measures to focus on repayment rather than borrowing funds through NSCs during the economic crisis played a crucial role in this decline. Consumers faced challenges with rising commodity prices, leading to decreased investments in NSCs. Additionally, reduced interest rates and mandatory identification requirements further deterred people from purchasing these savings certificates.

The government’s preference for borrowing from banks due to lower interest rates also contributed to the negative growth. As banks experienced liquidity shortages, excess liquidity in the banking sector decreased to Tk 1.66 lakh crore at the end of June 2023.

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