Bank accounts holding Tk1cr and above drop by 1,657 in Jul-Sep
During this period, deposits in such accounts fell by Tk26,187 crore
The number of bank accounts holding deposits of Tk1 crore and above dropped by 1,657 during the July-September quarter, according to data from the Bangladesh Bank.
During this eventful period, which included the July-August mass uprising and the consequent political changeover, deposits in such accounts fell by Tk26,187 crore.
By the end of September, there were 1.17 lakh crore-taka accounts in banks operating in the country, compared to 1.19 lakh at the end of June. The total deposits in these accounts stood at Tk7.47 lakh crore in September, down from Tk7.73 lakh crore at the end of June.
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Bankers attribute this decline to several factors, including political uncertainty following the fall of the Awami League-led government on 5 August. Many individuals reportedly withdrew large amounts of funds from their accounts during this period.
"Inflationary pressures have also significantly increased family expenses and business operating costs, which may have contributed to a reduction in deposits, particularly in institutional accounts," said Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank.
He added that customer trust in the banking sector has waned in recent months.
"We are actively working to restore confidence. Moreover, higher returns from government treasury bills and bonds have attracted many large depositors, leading to a decline in crore-taka accounts," he noted.
A sector-wise analysis of the central bank's data shows that both individual and corporate crore-taka accounts have decreased.
During the July-September quarter, the number of individual crore-taka accounts decreased by 620, standing at 33,861. Additionally, the deposits in such accounts fell by Tk8,923 crore to Tk83,385 crore.
Following the fall of the government on 5 August, reforms began in the banking sector alongside other sectors. Meanwhile, rumours that some banks would close prompted customers to withdraw deposits from their accounts, particularly affecting Sharia-based Islamic banks.
Bankers also reported instances of influential businessmen withdrawing their deposits from banks during this period.
