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Deposits in 10 well-performing private commercial banks surged by Tk 32,000 crore in the three months ending in March 2025, as depositors moved their funds away from financially weak institutions amid growing fears of collapse, persistent fund shortages, and distrust in bank management.

Bankers said many depositors still cannot fully access their money from the struggling banks, even after Bangladesh Bank injected over Tk 30,000 crore in liquidity support into six of the most distressed institutions.

Despite the support, several banks continued to negotiate partial withdrawals due to overwhelming demand, fueling further panic.

Additionally, Bangladesh Bank’s disciplinary measures — including restructuring boards and initiating special audits — have contributed to public anxiety, leading many to shift their deposits to stable, well-governed banks.

The stronger banks are perceived to be insulated from scandals and are offering greater liquidity assurance, bankers said.

Dutch-Bangla Bank topped the list, mobilising a record Tk 7,657 crore during January–March, with its deposit base rising to Tk 60,245 crore in March from Tk 52,588 crore in December 2024.

BRAC Bank saw its deposits grow by Tk 5,628 crore, reaching Tk 76,053 crore in March from Tk 70,425 crore in December. In February alone, it stood at Tk 72,685 crore.

Despite facing serious allegations of loan scams and insider malpractices, Islami Bank Bangladesh managed to collect Tk 4,220 crore during the quarter, taking its deposit balance to Tk 1,62,655 crore in March from Tk 1,58,435 crore in December.

City Bank added Tk 2,690 crore in deposits, taking its total to Tk 54,441 crore in March from Tk 51,751 crore in December.

Other banks that saw significant growth during the quarter included Pubali Bank (Tk 2,493 crore), United Commercial Bank (Tk 2,349 crore), IFIC Bank (Tk 2,083), Jamuna Bank (Tk 1,844 crore) and Eastern Bank (Tk 1,394 crore). These institutions have largely been perceived as more stable, with tighter compliance and stronger asset quality.

In contrast, banks linked to the controversial S Alam Group experienced severe erosion in deposit bases. First Security Islami Bank lost Tk 2,400 crore in deposits during the January–March period, with its balance dropping to Tk 40,181 crore. Social Islami Bank lost Tk 2,184 crore, falling to Tk 27,824 crore, while National Bank’s deposits fell by Tk 1,765 crore to Tk 34,118 crore.

Global Islami Bank and Union Bank also lost Tk 828 crore and Tk 890 crore respectively.

Exim Bank which was controlled by NASSA Group experienced the steepest drop, with deposits falling by Tk 2,889 crore to Tk 39,653 crore in March.

Bankers said these banks remain gripped by a severe liquidity crisis, primarily due to public concern over their ownership structure, poor governance, and allegations that S Alam Group took Tk 2 lakh crore from the banks it had controlled.

Deposits of some banks including Padma Bank didn’t fall noticeably as they continuously failed to provide depositors money.

According to Bangladesh Bank, total banking sector deposits (excluding government and interbank) stood at Tk 18,20,097 crore in April 2025, up from Tk 16,81,939 crore a year earlier — a 8.21 per cent growth year-on-year.

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.

However, this growth is clearly uneven.

While strong banks continue to attract more deposits, weak banks are facing a worsening liquidity squeeze. The confidence crisis, that began in mid-2023 following high-profile loan scams and regulatory failure, continues to plague weaker banks despite the regime change in August 2024.

As public trust shifts toward transparent and better-governed banks, the central bank is pursuing a cautious but firm approach.

Bangladesh Bank governor Ahsan H Mansur has publicly stated that some shariah-based banks may be taken over by the government and that reforms, including forced mergers, are being prepared under new ordinances.

Bankers said that 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 during the previous regime.

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.

Legacy issues — such as non-performing loans (NPLs), lack of accountability in loan disbursement, and political influence — must be addressed comprehensively, they said.