Accounts above Tk1 crore up by 4,954 in December quarter

Despite a general slowdown in deposit growth within the banking sector, the number of accounts holding over Tk1 crore witnessed a significant increase between October and December 2024.

Data released by the central bank reveals that 122,000 accounts held deposits exceeding Tk1 crore by the end of the December quarter, up from 117,000 in the preceding quarter. This represents a rise of 4,954 accounts, or 4.23%, within three months.

Senio officials of several banks attribute this growth to restored confidence in the banking sector following a period of uncertainty after the government transition. 

Initially, concerns about bank security led to deposit withdrawals, including from high-value accounts. 
 
However, a private bank's managing director explained that the Bangladesh Bank's restructuring of weak bank boards and the lack of alternative investment avenues contributed to a resurgence in deposits during November and December.  

The total value of deposits in these high-value accounts also increased, reaching Tk7.75 lakh crore by the end of the December quarter, compared to Tk7.47 lakh crore in the September quarter— a growth of Tk18,000 crore, or 3.75%. 

Notably, individual accounts holding over Tk1 crore saw a substantial increase. The number of such accounts rose by 1,072 to 35,579, with total deposits reaching Tk93,080 crore. 

This represents a 5.07% increase in account numbers and a 12.54% increase in deposit value.

Wishing anonymity, a senior central bank official said attractive deposit interest rates, ranging from 8-11% offered by some commercial banks, is a key factor driving this growth. 

The banking sector underwent significant reforms following the government transition, including the cessation of direct liquidity support to certain Islamic banks and the dissolution of boards in banks controlled by S Alam. While initial uncertainty triggered deposit withdrawals, this trend has since subsided.