'Single digit rate on loans may decrease banks' profitability'

Banks may feel discouraged in disbursing small and medium enterprise (SME) loans, as single digit interest rate on bank loans is implemented,” said Syed Mahbubur Rahman, managing director at the Mutual Trust Bank and former chairperson of the Association of Bankers, Bangladesh (ABB), in an interview with Mehedi Hasan ofDhakaTribune.He also talked on issues concerning the present situation of the banking sector and challenges that the implementation of 9% interest rate on lending and 6% interest rate on bank deposits may pose