The net investment in the national savings certificates and bonds increased by 427.61 per cent in the first four months of the current fiscal year 2013-14 compared with that in the same period of the FY13 because of a declining trend in the premature encashment.
The selling rate of the savings certificates and bonds, however, declined by 6.29 per cent in July to October of the FY 14 compared with that in the corresponding period of the FY 13, according to the Directorate of National Savings data.
A DNS official told New Age on Thursday that the five-year savings tools of the DNS, which were sold in the FY10, will mature in the next fiscal year meaning that the premature cashing of the instruments will decline in this FY14.
The tenure of the majority of tools of the DNS is three-year and five-year, he said.
The DNS data showed that the net investment in the savings instruments was Tk 2,698.88 crore in the first four months of the FY14 while it was Tk 511.44 crore in the same period of the FY13.
The savings instruments worth Tk 7,433.91 crore were sold through banks, national savings bureaus and post offices in the first four months of FY14 whereas the total sales of NSCs in the same period of the FY13 was Tk 7,933.53 crore.
The net investment in the savings instruments stood at Tk 2,698.88 crore in the first four months of this FY14 as the government paid Tk 4,735.03 crore to the investors as capital payment who cashed their savings tools in the period.
In the first four months of FY13, the net investment in the savings tools stood at Tk 511.44 crore as the government had paid Tk 7,422.08 crore to clients as capital payment against the mature or pre-mature encashment.
The savings tools encashment by the clients declined by 36.20 per cent in the first four months of the FY 14 compared with that in the same period of the FY 13 which pushed up the net investment.
The DNS official said that the clients had earlier made huge premature encashment of their savings tools but the trend in the recent months declined significantly.
‘The clients withdrew their investment in the last two fiscal years from the savings tools of the banks’ deposit products. But the banks have recently reduced the rate of interest on their deposit products as the loan disbursement in the private sector decreased massively’, he said.
Under the circumstances, the banking sector is now enjoying enough liquidity due to the dull business situation amid political unrest, he said.
The majority of the savings schemes of the DNS are now offering the clients higher interest rates than those on the bank deposit products, he said.
For this reasons, the premature encashment of the savings tools declined in the recent months, he said.
He hoped that the net investment in savings tools might cross Tk 6,000 crore in the FY14.
The government in the last fiscal year collected only Tk 772.84 crore or 10.44 per cent of the annual target of Tk 7,400 crore in investment in the national savings certificates and bonds.
The net investment in the savings tools stood only at Tk 479.02 crore in the FY12 against an annual budgetary target of Tk 6,000 crore.
-With New Age input
