The amount of deposits in the country鈥檚 non-bank financial institutions (NBFIs) dropped by Tk聽68 crore in the July-September period due to a lack of customer trust and confidence in the sector.
According to Bangladesh Bank data, deposits in the NBFIs fell to Tk 47,838 crore in the quarter compared with those of Tk聽47,906 crore in the previous quarter.
The number of deposit accounts decreased to 3.87 lakh at the end of September 2024, down from 4.31 lakh at the end of December 2023 and 4.47 lakh in September 2023, indicating a continued loss of depositors.
Bankers attributed the decrease to massive loan irregularities, capital erosion and mismanagements in the NBFI sector during the Awami League regime which was ousted on August 5 through a student-led mass uprising.
Besides, rising living costs also prompted many depositors to withdraw their funds, they said.
According to the Bangladesh Bureau of Statistics, the inflation rate reached 11.38 per cent in November, with the overall inflation exceeding 9 per cent for 20 consecutive months, primarily driven by escalating commodity prices.
Furthermore, the recent increase in deposit rates in banks and government treasury bill rates has led some depositors to prefer these more secure investments over the NBFIs.
Loan disbursements by NBFIs declined by Tk 777 crore, reaching Tk聽74,140 crore in July-September, down from Tk聽74,918 crore in the previous quarter.
The loan-to-deposit ratio for NBFIs stood at 1.54 at the end of September, indicating a more aggressive lending stance compared with their deposit base.
In the July-September period of 2024, the NBFIs experienced a 28-per cent decline in loan recovery, with the amount declining to Tk聽6,584 crore from Tk 9,149 crore in the previous quarter ending in December.
In contrast, banks maintained a lower loan-to-deposit ratio of about 0.86.
Meanwhile, the total deposits in scheduled banks dropped by 0.73 per cent, reaching Tk聽18,25,338 crore in the July-September quarter compared with those in the previous quarter.
By December 2023, deposits in the NBFIs had risen to Tk 47,491 crore, while the total loans in the sector amounted to Tk 73,759 crore.
Fixed deposits in the NBFIs also dropped to Tk 46,397 crore at the end of September, down from Tk聽46,539 crore in the previous quarter.
Fixed deposits registered 97 per cent of the NBFIs鈥� total deposits in July-September period.
