Cash balance in Iranian banks totals $303 million

Business Materials 28 September 2012 17:10 (UTC +04:00)

Azerbaijan, Baku, Sep.28/ Trend F.Milad/

The total cash balance in Iranian banks amounted to 3.72 trillion rials (some $303 million) by the end of the fourth calendar month of Tir (ended on July 21), Central Bank Governor Mahmoud Bahmani stated.

The residue of paid financial facilities also amounted to 3.91 trillion rials (some $318 million), he added, the ISNA news agency reported.

The Iranian banking sector has no plans to change the current profit rates, Bahmani said on September 15.

For the time being, the profit rates are not likely to be changed till the inflation rate is lowered, he told ISNA.

In May, Iran Finance and Economic Affairs Minister Shamseddin Hosseini said that paying 21 percent profit to bank deposits is costly, but it is inevitable because it has been approved by the Money and Credit Council.

Many of the domestic banks have offered up to 98 percent of the assets in the form of financial facilities, of which around 70 percent has been spent in housing, industry and agriculture sector, he added, the Mehr news agency reported.

In February, the Central Bank increased the maximum profit rate for bank deposits and bonds from 17 percent to 21 percent.