Bank deposit growth hits 20-month high in November on remittance surge

Infographic: TBS

Bank deposit growth in Bangladesh reached its highest level in 20 months, standing at 10.80% at the end of November 2025, driven largely by a strong surge in remittance inflows, even as the domestic economy remained subdued.

According to data released by the Bangladesh Bank today (11 January), the total volume of bank deposits stood at Tk19.53 lakh crore at the end of November 2025, up from Tk17.62 lakh crore in November 2024.

The previous month's growth, recorded at the end of October, was 9.62%, while the last time growth exceeded 10% was in February 2024, when it stood at 10.43%.

Remittance flows as key driver

Economists and bankers largely attribute the strong growth to the robust inflow of remittances.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS that the remittance flow contributed the most to the deposit growth, noting that flows were "very good" during November and December. He explained that dollars arriving through the banking channel are converted into taka, which then comes into the banking sector.

"The domestic economy is still depressed, so the growth is not coming from there," Zahid said. "Savings increase when domestic income and remittances rise. Remittances increased in the last two months of 2025, but no signs of increasing domestic income were visible."

He also discounted the idea that reduced panic in the banking sector – despite central bank confidence-building measures – was the primary cause, noting that the "currency outside banks" figure shows little change.

Cenbank's dollar purchase aids liquidity

The increase in remittances, which stood at $2.88 billion in November 2025, has positively impacted the commercial banks' Net Open Position. This has led banks to sell their excess dollars to the central bank, resulting in taka flowing from the central bank into the commercial banking system. The Bangladesh Bank has purchased $3.75 billion from commercial banks so far in the current fiscal year.

Md Ahsan-uz Zaman, managing director of Midland Bank, confirmed this view, saying, "The Bangladesh Bank is buying dollars through auction, increasing market liquidity. This influx of funds is helping to boost bank deposits." He also mentioned that some deposits were accumulated due to the formation of a collective Islamic bank.

A private bank's head of treasury noted that deposit growth correlates directly with the remittance flow, stressing that the domestic income situation is currently "not very good."

Data analysis shows that within the first 11 months of 2025, only August and November recorded double-digit bank deposit growth.

Currency outside banking system declines

Adding to the positive trend, Bangladesh Bank data shows that the volume of currency held outside banks fell by 3.04% year-on-year in November 2025 to Tk2.69 lakh crore, compared to Tk2.77 lakh crore in the same month of 2024.

A senior central bank official suggested that money held outside banks is gradually returning to the formal financial system.