Accounts above Tk1 crore up by 4,954 in December quarter
Banking sector experts say that money outside the banking system has started returning to the banks again
Although overall deposit growth in the banking sector has been sluggish, the number of accounts holding deposits exceeding Tk1 crore increased by nearly 5,000 between October and December 2024, according to central bank data.
At the end of December 2024, the number of such accounts stood at 1.22 lakh, up from 1.17 lakh in September. This represents an increase of 4,954 accounts or 4.23% over three months.
According to industry insiders, uncertainty arose in the sector following the change in government, prompting many depositors to withdraw funds due to concerns over banking security. During this period, withdrawals also occurred from high-value accounts.
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A managing director of a private bank, on condition of anonymity, noted that confidence in the banking sector began to recover in November-December after Bangladesh Bank restructured the boards of weaker banks. Additionally, with limited investment opportunities in other sectors, funds flowed back into banks, leading to a rise in high-value accounts.
Central bank data further shows that deposits in these accounts reached Tk7.75 lakh crore by December 2024, compared to Tk7.47 lakh crore in September – an increase of Tk18,000 crore or 3.75% in three months.
The data also provides insights into individual accounts with deposits exceeding Tk1 crore. Between October and December, the number of such accounts increased by 1,072, reaching 35,579.
The total deposit amount in these accounts rose to Tk93,080 crore, up from Tk83,385 crore in September. This marks a 5.07% increase in the number of accounts and a 12.54% rise in deposited funds.
A senior central bank official attributed the trend to commercial banks offering interest rates of 8%-11% on deposits, encouraging customers to keep their funds in banks.
Notably, following the change in government, reforms were initiated in the banking sector. Bangladesh Bank ceased direct liquidity support to several Islamic banks, with Governor Ahsan H Mansur stating that no bank would receive liquidity assistance through irregular means.
Subsequently, the central bank dissolved the boards of multiple banks controlled by S Alam. Amid the resulting uncertainty, some depositors initially withdrew funds, but this trend has since stabilised.
