Several well-performing banks, led by BRAC Bank and City Bank, saw strong deposit growth in the year ending May 2025 as depositors shifted funds away from weaker institutions amid fear of collapse and loss of trust in bank governance.
Bankers said the shift reflects public frustration with troubled banks that continue to restrict withdrawals despite receiving substantial liquidity support from the central bank.
Despite Bangladesh Bank injected over Tk聽35,000 crore into nine of the most distressed banks, several of them continued negotiating partial withdrawals due to overwhelming demand, further fueling public anxiety.
The situation worsened as the central bank began enforcing disciplinary measures, including the restructuring of bank boards, the initiation of special audits and merger process 鈥� steps that, while intended to restore order, triggered further unease among depositors who feared deeper instability.
Amid this crisis of confidence, depositors flocked to stronger, better-governed banks that are widely perceived as safer and more liquid, according to a Bangladesh Bank data.
BRAC Bank led the pack with a 35 per cent year-on-year deposit growth in May, with total deposits rising to Tk聽78,460 crore.
It was at Tk聽70,425 crore in December 2024.
City Bank followed with a 28 per cent rise, including its Islamic banking wing, reaching Tk聽56,404 crore in deposits in May. It was at Tk 51,751 crore in December.
Jamuna Bank secured the third position, posting a 27 per cent growth to reach Tk 33,230 crore in May. Eastern Bank saw a 21 per cent rise to Tk 48,355 crore over the same period.
Pubali Bank, Dutch-Bangla Bank, and Trust Bank each registered 20 per cent deposit growth, with respective balances at Tk聽80,084 crore, Tk聽59,448 crore, and Tk聽47,601 crore in May respectively.
Other banks showing robust growth include Mutual Trust Bank with 17 per cent, NCC Bank with 14 per cent, Bank Asia with 12 per cent, and Prime Bank with 11 per cent.
These banks are regarded as more resilient due to stronger compliance frameworks and healthier asset profiles.
Even Islami Bank Bangladesh, which has faced serious allegations of loan scams and mismanagement under the control of S Alam Group, managed to post a 7.48 per cent growth in deposits.
The bank began regaining depositor confidence after a major board overhaul in 2024. Its deposit base grew from Tk聽1,58,435 crore in December to Tk 1,66,217 crore in May.
Banks associated with the S Alam Group experienced sharp declines.
Social Islami Bank posted a 17.38 per cent negative growth in deposits. First Security Islami Bank saw a 7.73 per cent fall, Bangladesh Commerce Bank 9 per cent, Global Islami Bank 7.15 per cent, National Bank 13.21 per cent, and Union Bank 2 per cent.
Exim Bank, which was under the control of NASSA Group saw 14 per cent fall in May.
The damage to these banks鈥� deposit bases was somewhat limited only because they restricted withdrawals, failing to meet depositor demands. Without such restrictions, bankers noted, the losses would have been much more severe.
According to central bank data, total deposits in the banking sector, excluding government and interbank accounts, stood at Tk聽18,32,065 crore in May 2025, up from Tk聽17,00,608 crore a year earlier鈥攔epresenting a 7.73 percent year-on-year increase.
However, bankers said the growth is sharply uneven. While strong banks continue to attract growing volumes of deposits, weaker banks remain under intense liquidity stress.
