Banks asked to cut electricity, energy use

Bangladesh Bank today asked banks to reduce use of electricity and energy as part of the austerity measures taken by the government to contain the volatility in the foreign exchange market.

Later in July, Bangladesh Bank asked lenders to cut their spending for petrol, diesel, gas and lubricant by at least 20 per cent within this fiscal year.

But the recent price hike of petroleum products will increase banks' cost for petroleum products further, which is why implementing the previous instruction will be difficult for the lenders, a BB official said.

Under such a situation, banks were instructed not to use official vehicles for personal purpose, according to a BB notice.

The central bank also asked banks to allocate vehicles on a priority basis to operate the important tasks.

In addition, banks were ordered not to run air conditioner irrespectively and refrain from using unnecessary electric bulbs, kettles and other equipment as well.

BB, however, in the notice said banks have to follow the existing instruction of reducing their allocation for the use of petroleum products and gas by 20 per cent and electricity bills by 25 per cent by this fiscal year.