Sub-Branches Drive Loan and Deposit Growth

Bangladesh Bank’s latest statistics reveal that during the July–September 2025 quarter, loans and advances disbursed through bank sub-branches experienced a notable increase, surpassing the average growth rate of the general banking sector. The data highlights the growing strategic importance of sub-branches in promoting financial inclusion across the country.

According to central bank figures, total loans distributed via sub-branches rose from BDT 17,277 crore to BDT 18,645 crore, reflecting a growth of 7.9%. In contrast, the overall banking sector recorded a marginal loan growth of only 0.4%. Despite this robust increase, sub-branches’ contribution to total sectoral loans remains relatively modest at 1.1%.

A closer look at the distribution shows a slight decline in the share of rural loans, dropping from 34.8% to 30.0%, suggesting a slower pace of rural loan expansion compared with urban centres. Women’s access to credit also decreased marginally; their share of total loan volume fell from 15.2% to 14.8%, while their representation in loan accounts declined from 20.0% to 19.5%. Nevertheless, the total number of loan accounts increased from 205,904 to 221,037, marking a 7.3% rise.

On the deposit front, sub-branches outperformed the broader banking sector. Total deposits grew from BDT 68,071 crore to BDT 72,056 crore, representing a 5.9% increase, significantly higher than the sector’s average growth of 1.7%. The share of deposits held in sub-branches rose slightly from 3.4% to 3.5%. Rural contributions to deposits declined from 33.7% to 31.8%, indicating ongoing urban concentration, while women’s deposit share improved from 26.3% to 27.0%. The total number of deposit accounts expanded from 6,780,000 to 7,210,000, with women consistently accounting for 36.8%.

Sub-Branch Distribution by District and Bank (September 2025)

Dhaka, Chattogram, and Comilla host the highest number of sub-branches by district. By bank, IFIC Bank leads with 1,225 sub-branches, followed by NRB Commercial Bank with 693, underlining the strategic emphasis on sub-branch expansion among major financial institutions.

In summary, sub-branches have achieved growth above the sector average in both loans and deposits. However, there remains scope for stronger initiatives to expand rural lending and enhance women’s financial inclusion, ensuring more equitable access to banking services nationwide.