Written by The Banking Post
Deposits at Islamic banks rose further in the April–June quarter of 2025, driven by renewed customer confidence and central bank support.
According to Bangladesh Bank’s quarterly report on Islamic banking, total deposits stood at Tk 4.57 lakh crore at the end of June, up 3.22% from Tk 4.42 lakh crore three months earlier. Compared to a year ago, deposits grew by 2.67%.
Of the total, 10 full-fledged Islamic banks held Tk 3.97 lakh crore, accounting for 87% of the system’s deposits. Islamic banking branches of conventional banks contributed Tk 25,333 crore, while Islamic windows held Tk 34,083 crore.
This marks the third straight quarter of deposit growth for Shariah-based banks since confidence hit a low in July–September 2024, when deposits fell to Tk 4.36 lakh crore amid allegations of loan irregularities.
Confidence-building measures
The central bank said it has extended liquidity support to weaker Islamic banks and restructured their governing bodies after last year’s regime change.
“It is expected that these pragmatic steps will help Islamic banks regain public confidence and operate on a sound footing,” the BB report noted.
The total number of deposit accounts rose from 3.6 crore in March to 3.9 crore in June, though the number of investment accounts dipped slightly.
At the end of June, Islamic banks held 24.35% of all deposits and 29.18% of total investments in the country’s banking sector.
Challenges ahead
The report pointed out that rural branch expansion has not kept pace with demand. It suggested Islamic banks focus more on outreach in rural areas and increase investments in agriculture and small businesses that yield wider social benefits.
The BB also warned that several banks had recently faced liquidity crises stemming from irregularities and weak governance.
“Good governance and accountability are key to overcoming the current crisis and ensuring sustainable growth of the sector,” the report stressed.
