Deposits in the country鈥檚 banking sector increased by about Tk 35,743 crore in the three months ending in December 2024, indicating a gradual recovery of depositors鈥� confidence.
Bangladesh Bank data showed that total deposits, excluding interbank and government deposits, reached Tk 17,76,752 crore in December, up from Tk 17,41,009 crore in September 2024.
Deposits have been increasing by more than Tk 10,000 crore on average per month.
The figures stood at Tk 17,62,855 crore in November, Tk 17,55,217 crore in October, Tk 17,31,260 crore in August and Tk 17,34,026 crore in July.
Bankers attributed the rise in deposits to the easing of countrywide unrest, which encouraged many depositors to return their funds to banks.
They also noted that monthly interest payments that are added to principal amounts have contributed to the steady growth in deposit balances.
The government and the central bank repeatedly assured depositors that their money was safe and that no bank would collapse, playing a crucial role in restoring confidence.
As a result, currency held outside banks declined to Tk 2.76 lakh crore in December from Tk 2.77 lakh crore in November.
Bankers highlighted the central bank鈥檚 liquidity guarantee system as a key stabilising factor.
This system enables stronger banks to support struggling ones without incurring risks. Under this arrangement, nine struggling banks collectively received Tk 7,350 crore in interbank assistance.
Additionally, the Bangladesh Bank directly provided Tk 23,500 crore to such weak banks, so that depositors could withdraw funds from these banks.
Banks have also raised deposit interest rates, making savings more attractive.
In December, Tk 15.78 lakh crore was held in time deposits, while Tk 1.97 lakh crore was in demand deposits.
The banking sector had previously suffered from a severe confidence crisis due to widespread irregularities and rising non-performing loans during the Awami League regime, which was ousted on August 5, 2024, following a student-led mass uprising.聽
High inflation, political uncertainty and macroeconomic instability triggered significant withdrawals, reduced deposit inflows and shrank the overall deposit base.
Fixed- and low-income households, in particular, struggled with rising commodity prices, leading to higher withdrawals than deposits.
Inflation in Bangladesh decreased to 10.89 percent in December from 11.38 percent in November 2024, according to the Bangladesh Bureau of Statistics.
However, overall inflation has remained above 10 percent since March 2023, primarily driven by escalating commodity prices.
Despite these challenges, loan disbursements continued to rise, reaching Tk 21.77 lakh crore in December from Tk 21.55 lakh crore in November.聽 However, the interbank currency rate in December surged to Tk 122 against the dollar, compared with that of Tk 84.8 in August 2021, reflecting ongoing macroeconomic pressures.
While depositor confidence appears to be improving, challenges such as inflation, economic instability and political uncertainty continue to influence the banking sector, bankers said.
