Written by The Banking Post
In a historic financial year, Bangladesh Bank (BB) has raked in a staggering Tk 230 billion net profit in FY 25, marking a 52% jump from the previous year and the highest in its history. A cocktail of higher policy rates and commercial banks’ swelling reliance on BB’s liquidity lifelines turned the central bank into an unexpected profit powerhouse, insiders revealed.
Profit Surge Unveiled at Board Meeting
The landmark profit figures were officially presented at the BB’s 443rd board meeting, chaired by Governor Dr. Ahsan H. Mansur, where the financial statement of FY’25 was approved. According to BB data, net profit skyrocketed to Tk 230 billion from Tk 151 billion in FY’24, continuing the sharp upward trajectory from Tk 107.5 billion recorded in FY’23.
Repo Operations at the Core
Senior central bank officials disclosed that the biggest earnings driver was the income from repo and special repo operations. With commercial banks facing liquidity shortfalls, they turned increasingly to the BB’s short-term lending windows, pushing the regulator’s income to unprecedented levels.
Policy Rate Hike Boosts Earnings
To combat soaring inflation following last year’s political upheaval, BB gradually raised the policy rate from 8% to 10%. This strategic tightening, aimed at curbing price pressures, also fattened the central bank’s coffers. “The rise in policy rates had a direct impact on our income,” said one official, requesting anonymity.
Banks’ Growing Dependence on BB
Market insiders note that the prolonged economic slowdown forced commercial banks to lean heavily on the central bank’s liquidity facilities. “This dependency has become one of the main catalysts behind the record profit,” said another senior BB banker, also on condition of anonymity.
A Record Year in Perspective
The net profit surge underscores both the strength and the strains in Bangladesh’s banking landscape. While BB emerges as the ultimate winner, commercial banks’ increasing reliance on emergency funding highlights persistent fragility in the financial sector.
