Deposits in the country鈥檚 banking sector grew by more than 8 per cent in January, marking a rebound after four months of slower growth.
According to Bangladesh Bank data, total deposits, excluding interbank and government deposits, reached Tk 17,81,287 crore in January 2025, reflecting an 8.28 per cent increase, or Tk 1.36 lakh crore, compared with Tk 16,45,047 crore in January 2024.
This rise suggests a gradual recovery of depositor confidence.
Deposit growth had remained below 8 per cent for four consecutive months, standing at 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.
However, deposits have been increasing by more than Tk聽10,000 crore on average per month, with figures reaching Tk聽17,62,855 crore in November, Tk 17,55,217 crore in October, Tk聽17,31,260 crore in August, and Tk聽17,34,026 crore in July.
Bankers attribute this surge to the easing of nationwide unrest, which encouraged depositors to return their funds to banks.
They also noted that monthly interest payments added to principal amounts contributed to the steady growth in deposit balances.
Government and central bank assurances played a key role in restoring confidence.
Officials repeatedly stated that depositors鈥� money was safe and that no bank would collapse, helping to curb withdrawals.
As a result, currency held outside banks declined to Tk聽2.74 lakh crore in January from Tk聽2.76 lakh crore in December and Tk聽2.77 lakh crore in November.
Bankers also pointed to the central bank鈥檚 liquidity injection as a stabilising factor.
Bangladesh Bank directly provided Tk聽30,000 crore to six financially weak banks, allowing them to meet withdrawal demands and maintain operations.
Additionally, banks raised deposit interest rates, making savings more attractive to account holders.
In December, Tk 15.92 lakh crore was held in time deposits, while Tk 1.88 lakh crore was in demand deposits, reflecting a preference for fixed savings instruments.
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.
However, Bangladesh Bank has since introduced various reform initiatives and implemented strict measures to prevent irregularities, helping to restore depositors鈥� trust.
Meanwhile, inflation in Bangladesh dropped to 9.32 per cent in February, down from 9.94 per cent in January and 10.89 per cent in December, according to the Bangladesh Bureau of Statistics.
Despite these improvements, loan disbursements have continued to rise, reaching Tk 21.89 lakh crore in January from Tk 21.77 lakh crore in December.
The foreign exchange market remains under pressure, with the dollar rate surging to Tk 122, compared with Tk 84.8 in August 2021, reflecting ongoing macroeconomic challenges.
