Deposits in the country鈥檚 banking sector grew by 7.9 per cent in February compared with that in the same month in 2024.
According to Bangladesh Bank data, total deposits, excluding interbank and government deposits, reached Tk 17,92,685 crore in February 2025, while it was Tk 16,61,649 crore in February 2024.
The steady rise suggests that depositor sentiment is improving after months of volatility, liquidity shortages, and widespread concern about the safety of bank-held funds.
Deposit growth had remained at 8.28 per cent in January, 7.44 per cent in December, 7.46 per cent in November, 7.28 per cent in October, and 7.26 per cent in September, indicating a gradual recovery of depositor confidence following a prolonged period of financial instability and public mistrust.
However, deposits have been increasing by more than Tk 10,000 crore on average per month, with figures reaching Tk 17,81,287 crore in January, Tk 17,76,747 crore in December, 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 said that the easing of political unrest following the fall of the Awami League government on August 5, 2024, and the installation of a new administration has helped ease public anxiety.
During the previous regime, the banking sector was marred by rampant irregularities, mounting default loans, aggressive insider lending, and the controversial expansion of bank licenses to politically linked business groups. Public concern peaked in mid-2024, with widespread withdrawal of funds, particularly from private commercial banks, which were under the control of controversial S Alam Group, they said.
The central bank鈥檚 repeated assurances, coupled with direct liquidity support to weak banks, have helped calm nerves.
Bangladesh Bank injected over Tk 30,000 crore into six financially distressed banks since October, 2024, helping them meet withdrawal pressures. The liquidity support, along with rising deposit interest rates, has made banks more appealing to savers, they said.
As a result, currency held outside banks declined to Tk 2.71 lakh crore in February from Tk 2.74 lakh crore in January and Tk 2.76 lakh crore in December.
In February, Tk 16 lakh crore was held in time deposits, while Tk 1.90 lakh crore was in demand deposits, reflecting a preference for fixed savings instruments.
While the current figures signal a positive shift, experts caution that lasting stability will require deep structural reforms. Legacy issues鈥攕uch as non-performing loans (NPLs), lack of accountability in loan disbursement, and politically influence鈥攎ust be addressed comprehensively, they said.
The central bank has already begun reassessing bank mergers, revising oversight rules, and taking disciplinary action against wilful defaulters, which helped to restore depositors鈥� trust.
Meanwhile, loan disbursements have continued to rise, crossing Tk 22 lakh crore in February from Tk聽21.89 lakh crore in January and Tk 21.77 lakh crore in December.
