Net sales of NSCs recorded a steep decline amid shrinking household incomes

Business report :

Net sales of National Savings Certificates (NSCs) have dropped sharply by 63 per cent in first two months (July-August) of the current financial year of 2025-26 reflecting the combined impact of an economic slowdown, shrinking household incomes.

According to Bangladesh Bank data, net NSC sales fell to Tk 1,572 crore in July–August 2025, down from Tk 4,223 crore in the same period a year earlier.

In August last year, customers invested or purchased savings certificates worth Tk2,036 crore, but in August this year, sales plunged to just Tk289 crore – a fall of Tk1,785 crore or 87.67per cent, according to Bangladesh Bank data.

Compared with July, August sales slumped by 78.42per cent. Overall, net sales for the July-August period were down 62.78per cent year-on-year.

In July, gross sales of savings certificates stood at Tk7,916 crore, while Tk6,622 crore was paid out in maturities and interest, leaving net sales at Tk1,293 crore.

In recent years, NSC sales have been on a sustained downtrend, with net sales turning negative for three consecutive fiscal years.

In FY24, net sales hit a record negative Tk 21,124 crore, compared with negative Tk 3,295 crore in FY23 and negative Tk 6,063 crore in FY22.
The total outstanding amount of NSCs rose marginally to Tk 3,50,492 crore in August 2025, from Tk 3,40,071 crore a year earlier.

Sector insiders said the sharp fall to multiple factors including reduced income and employment opportunities, surging living costs, and higher repayments on matured certificates.

In addition, the government has deliberately limited new sales to meet IMF requirements, further suppressing investment despite savings certificates being viewed as one of the safest investment options.

The government had set a borrowing target of Tk1.04 lakh crore from banks for FY2025-26.

Borrowing targets from this source have been cut from Tk35,000 crore in FY2023 to just Tk12,500 crore in the current fiscal year, reflecting a strategic shift away from traditional domestic borrowing.

Additionally, the government is moving to significantly curb its reliance on borrowing through National Savings Certificates (NSCs), opting instead for the lower-cost funds available via Treasury Bills and Bonds (TBBs).

In a budget review file of the Ministry of Finance, the Ministry has recently given this instruction to the authority of the Department of National Savings, media reports.

Currently, the maximum interest rate on Savings Certificates stands at 11.98 percent, with the lowest at 9.72 percent.

This follows a reduction of 47 to 57 basis points across several schemes in July of this year. The ministry planned cut of an additional 1 percent to 1.5 percent with effect in January. As a result, the NSCs will become substantially less profitable for general investors.