Written by The Banking Post
Frequent rise in policy rate and commercial bank’s growing dependence on the central bank’s liquidity-feeding instruments helped the regulator enjoy an increase of around Tk 8.0 billion in net profit in a single financial year, according to the central bankers and money market analysts.
The incomes and expenses of the BB shared at its 443rd board meeting held on Tuesday with the governor Dr. Ahsan H. Mansur in chair and the board of directors of the Bangladesh Bank approved the financial statement of the last fiscal year in the meeting.
According to the BB data, the banking regulator made net profit of around Tk 230 billion in the FY’25, a hike of 52 per cent from Tk 151 billion recorded in the previous fiscal year (FY’24).
The BB’s net profit was Tk 107.5 billion in the 2022-23 financial year, according to the official statement.
Seeking anonymity, a BB official said the central bank earned the highest from repo and special repo against short-term loans given to several banks last fiscal year.
The official said banking regulator has enhanced policy rate in phases to 10 per cent from 8.0 per cent to contain higher inflationary pressure after the changeover in state power following last year’s July-August mass uprising, which made a significant contribution to the rise in its net profit.
On condition of not disclosing identity, another central banker said the commercial bank’s dependency on the BB’s available liquidity-feeding windows continues to grow significantly amid prevailing economic sluggishness.
“This is one of the main factors behind the record rise in the net profit of the BB,” the BB official said.
