BRPD Circular Letter No. 64: Interest/Profit Rate of Loan/Investment

Bangladesh Bank Chief Controller Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD/Regulatory Policy & Guidelines/01 Banking Regulation and Policy Department 27 November 2023 BRPD Circular Letter No. 64 Date: ------------------ 12 Agrahayan 1430 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir,

Regarding the Interest/Profit Rate of Loan/Investment

Reference is drawn to your attention to BRPD Circular Letter No. 44 dated 05 October 2023 on the subject cited above.

2. In view of the continued upward trend of inflation in Bangladesh, the following instructions are to be complied with to reduce it:

a) In determining the interest rate of loans, the interest rate shall be determined by adding a maximum margin of 3.75% to the BBPR; and

b) In determining the interest rate of pre-shipment export loans and agriculture and fisheries loans, the interest rate shall be determined by adding a maximum margin of 2.75% to the BBPR.

3. The interest rates specified in clauses 2(a) and 2(b) shall apply to loans newly disbursed after the issuance of these instructions.

4. In addition, other instructions contained in BRPD Circular No. 09/2023 and BRPD Circular Letter No. 27/2023 shall remain unchanged.

5. These instructions are issued under the powers conferred by Section 29(2)(c) of the Bank Company Act, 1991.

6. These instructions shall come into force immediately.

Yours faithfully, (Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252