Now the banks can adjust the ratio throughout the year.

Officials said the central bank in an order on Tuesday extended the time to give the banks the opportunity to rein in an aggressive drive of the collection of deposits by offering high interest rates.

On Jan 30, the Bangladesh Bank lowered the ceiling for ADR by 1.5 percentage points to 83.5 percent to curb aggressive lending.

The central bank had said banks must adjust the ratio gradually by June 30. Now it has stretched the deadline to Dec 31.

After the Jan 30 notice was issued, the banks started to collect deposits by raising interest rates.

In 2013, the average interest rate on deposit was 8.68 percent. It dropped gradually to 4.9 percent in November last year.

After lowering the ADR, South Bangla Agricultural and Commerce Bank raised the interest rate of its deposit premium scheme to 11 percent. The bank is offering 9.5 percent interest on fixed deposit receipt or FDR.

AB Bank has raised the interest rate on monthly deposit scheme from 7.75 percent to 9.5 percent.

Other banks have also raised interest rates on deposits at similar rates.

Bangladesh Bank Governor Fazle Kabir at a programme on Saturday urged the banks not to aggressively collect deposits.

A central bank official, requesting anonymity, told bdnews24.com the banks would naturally raise rates of interest on loans after hiking those of deposits, which will go on to impact investments.

“Considering these issues, the central bank has extended the time to adjust the ratio,” he added.