Spending limit raised to set up new bank branches

Bangladesh Bank yesterday increased the amounts banks can spend to set up new branches and relocate existing ones considering the spiralling prices of the products required.

Banks now can spend Tk 1,850 per square feet to set up a new branch whereas the previous limit was Tk 1,500, according to a central bank instruction given to all lenders.

The spending limit for relocating branches has been increased to Tk 1,250 per square feet from Tk 1,000. Though the cost of purchasing information technology equipment and air-conditioners will not be included in the calculation, banks will have to be sensible in making such expenses.

Emphasis should be put on environment-friendly products when decorating the branches.

The central bank has recently got to know that some banks had started to breach the maximum ceiling of the establishment cost because of a price hike of the needed products, BB said in a circular.

Against the backdrop, the central bank has changed its previous instruction, a BB official said.