Bangladesh Bank's net profit surges to Tk22,600cr in FY25

Bangladesh Bank's net profit surged by nearly 48% year-on-year to Tk22,600 crore in the 2024-25 fiscal year, driven by significant interest income from government lending and commercial bank liquidity support. 

In FY24, the central bank's net profit was Tk15,300 crore. This profit growth continues a positive trend, as the net profit figure stood at Tk10,748 crore in FY23, meaning its income has more than doubled in just two years.

The central bank's board, presided over by Governor Ahsan H Mansur, approved the financial statements at its 443rd meeting yesterday (26 August).

A deputy governor confirmed the net profit figure, stating that a substantial portion would be deposited into the government's treasury. So far, Tk8,000 crore has been transferred, with the remainder expected to be paid within the next few days, he said.

According to the deputy governor, a large part of the central bank's earnings comes from interest on local and foreign currency assets. A significant portion of its local currency income is generated from treasury bonds purchased with printed money to lend to the government. 

The central bank also earns substantial interest by providing liquidity support to commercial banks through instruments like the Repo, Standing Lending Facility, and Assured Liquidity Support.

The central bank profits from selling US dollars to commercial banks and from interest earned on its foreign reserves. The Export Development Fund also contributes to foreign currency earnings.

Bangladesh Bank data shows that as of the end of May FY25, the outstanding government debt to the central bank stood at Tk95,706 crore, primarily consisting of treasury bonds worth approximately Tk74,000 crore. 

Additionally, as of the end of June FY25, commercial banks had an outstanding overnight, 7-day, and 14-day repo debt of Tk1,45,396 crore to the central bank, which earns interest at a minimum rate of 10%.