Islami Bank remains remittance leader in FY26 as Krishi, BRAC banks post strong gains

Trouble-hit Islami Bank retained its position as Bangladesh's largest remittance-collecting bank in the just concluded fiscal 2025-26, while state-owned specialised Krishi Bank emerged as a surprise second place-holder, followed by BRAC Bank.

Islami Bank maintained its dominance in remittance despite challenges faced by Shariah-based lenders, collecting $6.88 billion in FY26, according to Bangladesh Bank data.

Krishi Bank, traditionally known for its agricultural lending operations, delivered the biggest surprise by ranking second, collecting $4.10 billion in remittances during the fiscal year. BRAC Bank secured third place after collecting $2.97 billion.

Infograph: TBS

In FY25, Islami Bank topped the remittance chart with $4.97 billion, while Krishi Bank ranked fourth with $2.11 billion, followed closely by BRAC Bank in fifth with $2.05 billion.

Bangladesh received a record $35.59 billion in remittances through formal banking channels in FY26, up 17.3% from $30.3 billion in the previous fiscal year.

The higher inflows helped offset a widening trade deficit and narrow the current account deficit despite weaker export earnings, according to the Bangladesh Bank.

However, the pace of growth slowed markedly from FY25, when remittance inflows surged 27%, the fastest annual increase in five years.

Islami Bank Managing Director Altaf Hossain said the bank collected remittances worth Tk83,365 crore last fiscal year, accounting for a 19.35% share of the country's total inflows.

"This outstanding achievement is a direct result of the long-standing trust, confidence and brand loyalty our expatriate customers place in our institution," he said.

He said the bank provides nationwide remittance services through its extensive network of branches, sub-branches and agent outlets, supported by the country's largest international network of exchange houses and global correspondent partners.

Customers can receive remittances in real time through online banking, while instant digital receipt options are available via CellFin and mCash, he said.

To better serve expatriates, the bank has 20 dedicated representatives in major remittance hubs, including Saudi Arabia, the UAE, Oman, Qatar, Jordan, South Korea, and Singapore.

"Ensuring our expatriates' hard-earned money reaches their families safely and swiftly remains the highest priority of our banking services," Altaf said.

Mostafizur Rahman, head of International and Accounts Division at Krishi Bank, said the bank achieved another major milestone by collecting over Tk50,000 crore in FY26.

"This achievement reflects the trust of expatriates, the strong support of exchange houses, and the coordinated efforts, dedication and tireless work of our employees," he said, adding that the bank's success was the result of long-term planning.

He added that Krishi Bank uses expatriates' hard-earned foreign currency with the utmost care and responsibility to finance government imports, including fertiliser, fuel and electricity, as well as other essential commodities. 

"We'e playing a key role in meeting the government's import payment obligations," he said.

In FY25, Islami Bank collected $4.96 billion 

BRAC Bank secured third place after collecting $2.97 billion in remittances in FY26. The bank collected $2.04 billion in FY25.

Other banks received $10.22b

Trust Bank ranked fourth among the country's top remittance-collecting banks, receiving $2.50 billion during FY26. State-owned commercial lenders Agrani and Janata Banks secured fifth and sixth positions, collecting $2.48 billion and $2.08 billion, respectively.

Among private banks, City Bank received $1.12 billion, followed by Dutch-Bangla Bank with $1.09 billion, Eastern Bank with $1.07 billion and Pubali Bank with $1.04 billion.

Remittances help narrow current account deficit

Bangladesh's current account deficit narrowed sharply in the first 11 months of FY26, driven by record remittance inflows, although weak domestic demand continued to weigh on trade and investment.

According to Bangladesh Bank data, the deficit fell to $301 million during July-May, down from $778 million in the same period a year earlier.

The current account tracks a country's trade in goods and services, cross-border income flows, and transfers such as remittances and foreign aid.

Net reserves climb to $27.92b

Bangladesh's net international reserves (NIR) rose to $27.92 billion, recovering from a low of $16.77 billion in July 2024, the central bank said.

The improvement was supported by stronger remittance inflows, a more stable exchange rate, multilateral financing, and subdued import payments.

Under the IMF's BPM6 methodology, NIR is calculated by deducting reserve liabilities from reserve assets and is used as a key indicator of a country's ability to stabilise its currency and meet external payment obligations.