Sales of state-run savings tools rebounded in the just-concluded fiscal year, signaling a recovery in demand for the government savings instruments after a sharp decline in the previous fiscal year.
However, the recovery remained fragile as investors continued to encash their certificates at a significant pace.
The instruments again recorded net repayment in the final month of the fiscal year, indicating continued pressure on household savings.
People familiar with the developments said the rise in fresh sales is encouraging, but the relatively weak net position suggests that investors remain cautious about locking their funds into savings certificates amid changing returns, liquidity needs and alternative investment opportunities.
Total sales of National Savings Certificates (NSCs) increased by Tk 240.74 billion, or 35.18 per cent, in FY26 over the previous fiscal year, according to Bangladesh Bank (BB) official data.
Total repayment also increased by Tk 175.75 billion, or 23.59 per cent, during the period.
As a result, the net sales of NSC stood at Tk 4.36 billion in FY26 against the net repayment of Tk 60.63 billion in FY25, reflecting a great improvement in NSC sales.
However, the government recorded a net repayment of Tk 3.69 billion in June, as repayments exceeded the volume of fresh sales.
The outstanding sales of NSCs stood at Tk 3.34 trillion at the end of June 2026, which was only 0.13 per cent higher than the amount a year earlier.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said the increase in the NSC sales was encouraging compared with the previous year's net repayment, but the relatively small net sales indicated that the recovery remained fragile.
"The renewed net repayment in June suggests that households are still cautious about keeping their funds locked in savings certificates. Investors are likely weighing returns against liquidity requirements and alternative investment opportunities," he said.
He said the government should focus not only on increasing gross sales but also on understanding the reasons behind the high level of repayments.
"A sustainable savings-certificate market requires predictable policies, prudent returns and greater confidence among small savers," Dr Reaz added.
He also suggested gradually diversifying the government's domestic borrowing sources and strengthening the bond market to reduce excessive reliance on NSCs.
