Net investment in nat’l savings tools swells Increases by 1,186pc in July-April

May 31, 2014

The net investment in the national savings certificates and bonds increased by 1,186.32 per cent in the first 10 months of the current financial year 2013-14 compared with that in the same period of the FY13. According to the latest data of Directorate of National Savings, the net investment in the savings instruments was Tk 8,734.50 crore in July-April of the FY14 while it was Tk 679.03 crore in the same period of the FY13.
A DNS official told New Age on Thursday the net investment of the government savings tools had increased significantly in the recent months due to a continuous decreased trend in premature cashing by clients.
According to him, previously clients made huge premature cashing of their savings tools, but the trend (premature cashing) changed significantly in recent months.
He said that the cashing of the savings tools decreased significantly in this financial year as the five-year savings tools, which were sold hugely in the FY10, would mature in the next financial year.
The DNS data showed that the cashing of savings tools by clients declined by 43.22 per cent in July-April of the FY14 compared with that in the same period of the FY13.
Clients cashed savings instruments worth Tk 10,730.74 crore in the first 10 months of the FY14 while the figure was Tk 18,902 crore during the same period of the FY13.
Another DNS official said that the higher net investment in the government savings tools in the first 10 months of the FY14 would not sustain in the next financial year due to a downward trend in the NSC sales.
The DNS data showed that sales of the national savings certificates and bonds had decreased by Tk 115.79 crore to Tk 19,465.24 crore in the first 10 months of the FY14 from Tk 19,581.03 crore during the same period of the FY13.
The decreased sales of the national savings certificates and bonds indicate that the savings ability of general people has declined, the official said.
He said the lower- and middle-income groups of people were now facing financial crisis due to the recent political unrest which pushed down the gross investment in the government savings tools.
The official said farmers had faced problem in the period in selling their products due to a supply chain disruption amid frequent blockades enforced by the opposition political alliance.
Under the circumstances, farmers counted huge amount of losses in recent months and it hit their savings ability, he said.
The DNS official said that the net investment in the savings tools might cross Tk 10,000 crore in the FY14 if the trend of lower premature cashing continues in the last quarter of this financial year.

-Input from New Age

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