BAB announces to cut interest rates

Bangladesh Association of Banks (BAB), an association of the bank owners, has announced to cut the bank interest rates which will be effective from July 1.     

The banks will not take more than 9 percent interest on loans while they will give maximum 6 percent interest on three-month period deposits.   

The decision has been taken from a meeting of the association held at its office in Dhaka's Gulshan on Wednesday morning.  

At a press briefing after the meeting, BAB Chairman Nazrul Islam Majumder, said that they have taken the decision upon the order of the prime minister.    

"If any bank will disobey the decision then action will be taken against it. Another meeting in this regard will also be held soon," he added.

BAB took the decision following the announcement of Islami Bank Bangladesh Limited to cut down the interest rates on investment into one digit from July.