Dhaka, Jan. 24 -- A major cut in the interest rate on standing deposit facility (SDF) can hardly stop affluent banks from loading their surplus funds into the state-guaranteed deposit instrument despite lower gains than that from interbank lending.

A cardinal cause is lower call from the call-money market for funds as commercial banks can now meet their liquidity hunger from different other sources and dollar sales, sources say.

Officials and money-market analysts say the demand on the interbank call-money market drops because of gradual fall in arbitrary benefits from investment in government securities following squeezing yields.

On the other hand, banks seem to be cautious in long-term investment keeping in mind primary dealer (PD) ...