Bank deposits hit 50-month high as growth returns to double digits

Bank deposit growth in Bangladesh rose to 11.10% in December 2025, marking the highest rate in 50 months, driven largely by robust remittance inflows and higher deposit interest rates.

Bangladesh Bank data shows that total deposits in the banking sector stood at more than Tk19.73 lakh crore at the end of December 2025, up from Tk17.76 lakh crore a year earlier.

Managing directors of several banks have attributed the rise primarily to increased remittance inflows, despite persistent challenges such as high inflation, rising unemployment, subdued export earnings and sluggish private sector credit growth.

Syed Mahbubur Rahman, managing director & CEO of Mutual Trust Bank, told TBS that remittance growth had played a decisive role. "Despite rising unemployment and stagnant incomes, the volume of deposits has grown because remittances have increased," he said.

Sohail RK Hussain, managing director of Bank Asia, said public confidence in banks as a safe investment avenue also contributed to the growth. "When remittances come through banking channels, they are converted into taka, which increases the volume of deposits. Moreover, deposit interest rates are now higher than before," he said.

According to central bank data, remittance inflows reached $3.22 billion in December 2025, the third-highest monthly figure in the country's history, compared with $2.64 billion in December 2024. The highest-ever monthly remittance inflow was recorded in March 2025 at $3.29 billion.

Following the political transition in 2024, remittance flows through formal banking channels began to rise steadily.

A senior official of Bangladesh Bank said the central bank moved away from the 9-6 interest rate regime in mid-2024, after which both deposit and lending rates increased. Under the previous policy, depositors received relatively lower returns, but the shift has made bank deposits more attractive.

A treasury head at a private commercial bank said deposit rates currently range between 9% and 9.5%, which is above the prevailing inflation rate. At the same time, yields on treasury bills and bonds have declined, prompting individuals and institutions to park funds in bank deposits.

In September 2021, deposit growth stood at 11.26%. Thereafter, it declined steadily, remaining in single digits for 17 consecutive months before returning to double digits in August 2025.

Currency outside banks drops

Bangladesh Bank data also shows that currency outside the banking system declined slightly. As of December 2025, currency outside banks stood at Tk2.75 lakh crore, compared with Tk2.76 lakh crore in December 2024 – a decrease of over Tk1,000 crore.