Deposit growth in banks reached a five-year peak by the conclusion of December 2025, attributed to a gradual resurgence in trust among savers. According to the quarterly statistics of scheduled banks released by the Bangladesh Bank (BB), the nation’s banks amassed Tk 21 lakh crore in savings by the end of the previous year, marking an 11.51 percent surge compared to the previous year.
Surpassing the Tk 20 lakh crore milestone, deposits in 61 banks hit an all-time high. Md Mahiul Islam, the deputy managing director at BRAC Bank, noted, “It seems that the public’s faith in banks is being steadily reinstated.” However, the increase in deposits was not universal across all banks, with only about seven to eight banks experiencing a surge in savings.
Data from the BB revealed that private banks, including Islamic banks, held 69.52 percent of the total deposits, followed by state banks and foreign banks. In 2024, deposit growth in the banking sector decelerated due to a crisis of confidence surrounding certain banks grappling with significant loan irregularities and challenges in returning funds to savers promptly, despite offering attractive interest rates.
The BB had to infuse funds into these vulnerable banks to assist them in overcoming liquidity challenges. A senior banker at a private bank highlighted that several banks are still encountering difficulties in attracting savers. The Bangladesh Bank Quarterly report indicated a shift, stating, “A gradual alleviation of inflationary pressures seemingly curtailed dis-saving behaviors by households and businesses, resulting in robust inflows into time and savings deposits.”
The report emphasized that the robust upsurge in bank deposits signifies heightened savings and an increased inclination of the public to maintain financial assets within the formal banking system. It also suggested that recent political stability and trust-building initiatives have bolstered public confidence in the banking sector.
Despite the expansion in deposits, banks observed the slowest growth in loans and advances in 2025 due to subdued investment demand from the private sector, influenced by escalating interest rates and banks’ cautious lending practices to mitigate the risk of non-performing loans. Banks disbursed Tk 17.77 lakh crore in loans and advances, marking a 5.6 percent increase compared to the previous year, as per the BB’s quarterly assessment, which highlighted the steady growth in advances amidst high non-performing loans and a stringent monetary policy.