Bank deposits in Bangladesh surged by 9.98 percent year-on-year at the end of September 2025, achieving the second-highest growth rate recorded over the past 18 months.
This strong performance signals a steady return of public confidence in the banking sector following months of stagnation.
The impressive September figure follows an even higher 10.02 per cent increase in August, which was the highest growth rate seen in 17 months.
Before this positive trend started in August, deposit growth had remained under the 9 per cent threshold for 13 consecutive months, with the last time it surpassed 9 per cent being in June 2024, when it reached 9.25 per cent.
According to Bangladesh Bank data, total deposits in the banking sector reached Tk 19.14 lakh crore at the end of September 2025, compared to Tk 17.41 lakh crore recorded in September 2024.
Experts have described the September figures as 鈥榚ncouraging,鈥� noting that the overall performance reflects a significant recovery compared to the previous 16 months.
They attributed the increase to three main factors 鈥� a shift of deposits towards strong banks, relatively higher interest rates compared to inflation, and a fall in treasury bill and bond yields.
Top-tier banks have seen the most growth as depositors increasingly trust well-governed institutions. Following the change of government last year, many customers withdrew funds from weaker banks and moved them to stronger ones.
Currently, most banks offer deposit rates between 8.5 per cent and 9.5 per cent, which remain higher than the 8.36 per cent inflation recorded in September.
The report noted that during September, deposit interest rates were 25 to 50 basis points above average, encouraging people to park funds in banks as a safe investment option.
At the same time, yields on treasury bills and bonds began to decline in September, prompting many individuals and institutions to shift their investments from government securities to bank deposits.
Deputy managing director of the Dutch-Bangla Bank Limited Mohammed Shahid Ullah said that deposits are rising in banks that have improved their quality and governance.
Confidence in the banking sector has grown, which is why deposits are increasing, he added.
DMD of the Premier Bank PLC Abdul Quaium Chowdhury also said that year-end campaigns by banks, aimed at meeting annual targets, played a role in boosting deposits.
According to Bangladesh Bank data, total deposits in the banking sector stood at Tk 19.14 lakh crore at the end of September 2025, compared to Tk 17.41 lakh crore in the same month last year.
Customer confidence is gradually returning to Islami Bank Bangladesh Ltd, IFIC Bank and United Commercial Bank, which have all reported strong growth in deposits in recent months.
After the change in government, Bangladesh Bank dissolved the boards of several banks, including IBBL, IFIC, and UCB. Fearing instability, many depositors withdrew their funds, putting pressure on liquidity.
Despite concerns about governance, these banks did not face difficulties in repaying depositors. After a year of weak growth, deposits are once again on the rise.
IBBL, the country鈥檚 largest private bank, recorded a 14.7 per cent growth in deposits over the past year, driven by renewed public trust. As of September 2025, deposits at IBBL stood at Tk 1,79,579 crore, up from Tk 1,56,564 crore in September 2024.
The bank came under pressure after 5 August 2024, when Chattogram-based businessman S Alam lost control of its board, sparking panic among depositors who rushed to withdraw funds.
IFIC Bank also faced unrest and internal protests following the political transition, when its then-chairman Salman F Rahman, was removed. Rumours that the bank might collapse prompted a wave of withdrawals.
However, over the past year, IFIC鈥檚 deposits have grown by Tk 5,714 crore, a 12.6 per cent rise, reaching Tk 51,127 crore in September 2025, up from Tk 45,412 crore a year earlier.
UCB also faced significant withdrawals in the wake of the government change, but the bank has since recovered, adding over Tk 11,000 crore in deposits within a year. Deposits rose from Tk 54,439 crore in September 2024 to Tk 65,524 crore in September 2025.
The Bangladesh Bank data showed that currency held outside the banking system declined by Tk 8,829 crore year-on-year. As of September 2025, currency outside banks stood at Tk 2.74 lakh crore, compared to Tk 2.83 lakh crore in September 2024.