By Duruthu Edirimuni Chandrasekera
Commercial banks have been informed by the Treasury that the Rs. 30 billion bridging bond to three state banks to enable these institutions to offer 12 per cent annual interest rate for deposits of pensioners and elders will not be extended to private banks, officials said.
The Central Bank along with Treasury officials had a meeting with the private banks this week in a bid to discuss a game plan in order to avoid a flight of deposits to state banks from the private sector banks, but had decided this proposal in the budget won’t impact the latter ‘much’.
This was after it was revealed that some 750,000 senior citizens hold accounts in 33 banks worth Rs. 750 billion, as per Sri Lanka Banks’ Association (SLBA) data.
“There will be a cap (upper limit) on the amount that this 12 per cent annual interest rate will be offered (by state banks),” Upali de Silva, Secretary-General, SLBA told the Business Times. He said that the maximum deposit amount will be below Rs. 1 million and only one such account per person will be permitted.
He added that SLBA members were concerned about this budget proposal ‘on principle’. Currently the interest rate for senior citizens is at 6 to 6.5 per cent.
www.sundaytimes.lk
Commercial banks have been informed by the Treasury that the Rs. 30 billion bridging bond to three state banks to enable these institutions to offer 12 per cent annual interest rate for deposits of pensioners and elders will not be extended to private banks, officials said.
The Central Bank along with Treasury officials had a meeting with the private banks this week in a bid to discuss a game plan in order to avoid a flight of deposits to state banks from the private sector banks, but had decided this proposal in the budget won’t impact the latter ‘much’.
This was after it was revealed that some 750,000 senior citizens hold accounts in 33 banks worth Rs. 750 billion, as per Sri Lanka Banks’ Association (SLBA) data.
“There will be a cap (upper limit) on the amount that this 12 per cent annual interest rate will be offered (by state banks),” Upali de Silva, Secretary-General, SLBA told the Business Times. He said that the maximum deposit amount will be below Rs. 1 million and only one such account per person will be permitted.
He added that SLBA members were concerned about this budget proposal ‘on principle’. Currently the interest rate for senior citizens is at 6 to 6.5 per cent.
www.sundaytimes.lk
No comments:
Post a Comment