Net sales of national savings certificates (NSCs) returned to positive territory in the first half of FY26, but the figures show that the government continues to scale back its dependence on the high-cost instruments.

Bangladesh Bank data show that net NSC sales stood at Tk 2,461 crore in July–December of FY26, compared with a negative Tk 2,244 crore in the same period a year earlier.

Despite the turnaround, the recovery remains modest.

In December 2025 alone, net sales amounted to Tk 384 crore, far below levels seen several years ago when savings certificates were a major source of budget financing.

Over the past three fiscal years, annual net NSC sales have remained negative.

Net sales were negative Tk 6,063 crore in FY25, following a record negative Tk 21,124 crore in FY24 and negative Tk 3,295 crore in FY23.

As repayments outpaced fresh sales, the outstanding stock of NSCs declined to Tk 3.41 lakh crore in December 2025 from Tk 3.47 lakh crore a year earlier.

The government has instead leaned heavily on the banking system. Net government borrowing from banks surged to Tk 54,774 crore in the July–December period of FY26, sharply higher than Tk 6,231 crore in the same period of the previous fiscal year.

For the full year, the government plans to borrow Tk 1.04 lakh crore from banks and Tk 21,000 crore from non-bank sources, including savings certificates.

Experts said that NSCs carried interest rates higher than treasury bills and bonds, making them costly for the government at a time of mounting interest payments.

To contain expenses, authorities have gradually reduced savings certificate rates since 2021 by up to two percentage points and tightened documentation requirements to curb misuse.

Persistently high inflation has eroded the real return on fixed-income instruments.

Inflation has remained above 8 per cent for nearly three years and rose to 8.58 per cent in January 2026 from 8.49 per cent in December.

Many households have chosen to encash matured certificates to cope with rising living costs instead of reinvesting.

At the same time, several private banks now offer fixed deposit rates ranging between 8 and 11 per cent, narrowing the gap with NSC returns and attracting savers seeking flexibility.

Experts said that heavier reliance on bank borrowing could tighten liquidity in the financial system and crowd out private sector credit, particularly when businesses are already facing high borrowing costs.