Padma Bank’s SLR rate further relaxed
The private sector lender will be allowed to keep only 3.25% SLR of its term and demand deposits from 2022 to 2024
The central bank has further relaxed the statutory liquidity ratio (SLR) rate for Padma Bank.
In a circular issued on Thursday, the Bangladesh Bank said the private sector lender will be allowed to keep only 3.25% SLR of its term and demand deposits from 2022 to 2024.
The regular SLR rate for all commercial banks is 13%.
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Moreover, the commercial bank will be allowed to keep a minimum of 6.50% and 9.75% SLR of its deposits in 2025 and 2026 respectively, according to the new circular issued by the Department of Off-site Supervision of Bangladesh Bank.
The exemption will be effective from 1 January 2022.
The circular said changes have been made in Padma Bank's statutory liquidity ratio within Bangladesh, including its additional cash deposits of the cash reserve ratio.
The decision has been taken under the Bank Company Act in consultation with the government, the central bank said.
In a previous circular, Padma Bank was allowed to keep a minimum of 9.75% SLR of its deposits in 2022 and 13% in 2023.
