Sunday, 5th April 2026
Khabor Wala Desk
Published: 8th March 2026, 1:19 AM
The Bangladeshi banking sector witnessed a significant resurgence in 2025, with deposit growth reaching a five-year zenith. According to the latest quarterly statistics released by Bangladesh Bank (BB), total savings in scheduled banks surged to 21 lakh crore BDT by the end of December. This represents a year-on-year increase of 11.51%, signaling a robust recovery in public confidence following a period of deep-seated skepticism.
The crossing of the 20 lakh crore BDT threshold is a landmark moment for the nation’s 61 scheduled banks. Financial analysts attribute this influx to a combination of cooling inflation and a more stable political climate. Md Mahiul Islam, Deputy Managing Director at BRAC Bank, noted that while the overall trend is positive, the surge in deposits is not uniform across the industry. “It appears that people’s confidence is being restored, but the significant flow of savings remains concentrated within seven to eight top-tier banks,” he observed.
This concentration suggests that while the “liquidity famine” of 2024 has eased, savers remain discerning, favouring institutions with strong governance records over those previously marred by loan irregularities.
Private commercial banks, including those operating under Shariah-based Islamic principles, continue to dominate the market share.
| Bank Category | Market Share (Deposits) |
|---|---|
| Private Banks (inc. Islamic Banks) | 69.52% |
| State-Owned Commercial Banks | Significant |
| Foreign Commercial Banks | Minority |
The Bangladesh Bank Quarterly report highlighted that the easing of inflationary pressure has effectively halted “dissaving”—a phenomenon where households are forced to dip into their capital to meet daily expenses. Instead, businesses and households are once again showing a propensity to hold financial assets within the formal banking sector.
However, the picture for lending remains more subdued. Despite the abundance of deposits, loans and advances grew at their slowest pace in 2025, increasing by only 5.6% to reach 17.77 lakh crore BDT. This disparity is driven by:
Rising Interest Rates: Making borrowing less attractive for the private sector.
Cautious Lending: Banks are adopting a defensive stance to prevent a further buildup of non-performing loans (NPLs).
Muted Investment Demand: Economic uncertainty has led many businesses to postpone expansion plans.
While the central bank’s injection of funds into weaker institutions has provided a necessary safety net, the primary challenge for 2026 will be translating these record-high deposits into productive investments. For the banking sector to remain healthy, the gap between deposit growth and loan disbursement must be bridged through more aggressive NPL recovery and a further easing of monetary policy.
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