The apex bank has curbed the limit for purchase of luxurious vehicles made by scheduled commercial banks in a circular issued on Thursday.
The scheduled banks cannot purchase a motor vehicle worth more than Tk50 lakh or a jeep more than Tk1 crore even with own funds, the circular said.
“Banks should show cost affordable tendency for maintaining confidence of depositors and equity providers on management,” the circular added.
The notice came in view of discouragement of what is said top-level officials of some banks purchased luxurious vehicles in high expense for branch decoration.
The banks have been allowed purchase of security vehicles for the purpose of transporting remittance-money. But, they have been barred to buy cars on financial lease from other institutions.
The growth of vehicles in a bank has to be consistent with the expansion of manpower of the respective institution. 10% of annual expenditure growth will be limited for this sector.
Banks have been barred to use office space over 5000 square feet for branches located inside a city and 2000 square feet for those in rural areas.
The ceiling for purchase of IT equipment will not exceed Tk1500 per square feet for new branches. For office transfer, the expenditure shall not exceed Tk1000 per square feet.