BRAC bank, Islami bank and Dutch-Bangla banks lead in deposit growth

While some banks in the country are struggling to return depositors’ money, others are witnessing a surge in deposits. Even though the well-regarded banks are not offering particularly high interest rates, customers continue to flock to them to deposit their money. Many are also depositing funds online.

The cap on deposit interest rates was lifted in mid-2024, which led to an upward trend in deposit rates. However, due to a lack of demand for loans and a decline in interest rates on treasury bills and bonds, reputable banks are not aggressively raising deposit rates. A review of private banks’ deposit positions between January and May reveals this scenario.

It was found that during the first five months of 2025 (January–May), the largest increase in deposits occurred at BRAC Bank in the private sector. This was followed by Islami Bank, Dutch-Bangla Bank, United Commercial Bank (UCB), Pubali Bank, The City Bank, IFIC Bank, Jamuna Bank, Bank Asia and Dhaka Bank.

In the first five months of this year, BRAC Bank recorded the highest increase in deposits, amounting to TK 81.24 billion (8,124 crore). The bank’s deposits stood at TK 704.25 billion (70,425 crore) in December of the previous year, rising to TK 785.49 billion (78,549 crore) in May. A significant portion of this growth came through the bank’s branch network.

When asked, BRAC Bank’s Acting Managing Director, Tareq Refat Ullah Khan stated, “Some banks are currently in a poor state. Among Bangladeshi banks, BRAC Bank is at the forefront in terms of trust.”

Pointing out that the BRAC Bank has expanded services across the country through branches, sub-branches and agent banking, he said, “In addition to serving depositors, we have also launched services for remittance recipients. Furthermore, various international credit rating agencies have assessed our performance and given us strong ratings, which have helped strengthen public confidence.”

These are the reasons the bank’s deposits have grown the most, he said, adding, “BRAC Bank has always been operated with complete professionalism.”

Speaking about the growth, DBBL’s Managing Director Abul Kashem Md Shirin stated to Prothom Alo, “People have trusted us from the very beginning. Additionally, we opened more than 300 sub-branches last year. Through agent banking, sub-branches, branch expansions and enhanced technological reliance, our services have reached people’s doorsteps. As a result, deposits are increasing. We are working to ensure prudent utilisation of funds while maintaining customer confidence.”

Over the same period, deposits at United Commercial Bank (UCB) increased from TK 574.12 billion to TK 607.38 billion. Retail customers played a significant role in this growth, contributing 56 per cent of the additional deposits, while corporate and SME customers accounted for 32 per cent and 12 per cent respectively.

Of this, 40 per cent of deposits were of low interest. This bank, too, has been freed from political influence following the change in government.

UCB’s Managing Director Mohammed Mamdudur Rashid recently told Prothom Alo, “We are moving forward. Substantial deposits are coming in, and gradually loan disbursement is also increasing. Alongside strengthening the bank’s capital base, we have embarked on initiatives to restructure the bank.”

During the five-month period, Pubali Bank’s deposits increased from TK 706.37 billion to TK 746.32 billion, a rise of TK 39.95 billion.

Following BRAC Bank, Islami Bank has recorded the second-highest growth in deposits, which has risen from Tk 1584.35 billion in December last year to Tk 1662.17 billion in May this year. That means, it has seen an increase of Tk 77.82 billion.

However, a large portion of this bank’s loans has turned into non-performing loans. These loans remain stuck with S. Alam Group as well as with various business groups affiliated with the Awami League. After the recent change in government, however, the bank has been freed from political control.

Speaking about this, Islami Bank’s Managing Director (MD), Omar Faruk Khan, told Prothom Alo, “Our customers’ confidence has been restored. They are assured that irregularities at Islami Bank have ceased. For this reason, deposits have been rising since the change in government. We have already repaid a large portion of the loans previously taken from Bangladesh Bank.”

He further said, “One of S. Alam Group’s properties is being sold to recover defaulted loans. This will enable partial recovery and we are continuing efforts to realise the remaining amounts through similar processes.”

In terms of deposit growth, Dutch-Bangla Bank Limited (DBBL) ranks third. During the five-month period under review, its deposits rose from TK 525.88 billion to TK 594.88 billion, an increase of TK 68.6 billion.

At the end of December 2024, City Bank’s deposits stood at TK 459.70 billion, which rose to TK 496.01 billion in May 2025, an increase of TK 36.31 billion.

Masrur Arefin, Managing Director of City Bank, told Prothom Alo, “People are shifting from questioned banks towards the stronger ones. Additionally, deposit rates have increased. As a result, reputable banks are attracting more deposits. However, demand for loans remains weak, while bill and bond yields are also declining.”

Also Chairman of the Association of Bankers, Bangladesh (ABB) Masrur Arefin further said, “City Bank is proceeding cautiously, without aggressively pulling in deposits through special campaigns. Whatever deposits are coming in, they are arriving normally.”

Between January and May, IFIC Bank’s deposits rose from TK 482.78 billion to TK 509.03 billion; Jamuna Bank’s deposits increased from TK 299.46 billion to TK 320.59 billion; Bank Asia’s deposits grew from TK 384.13 billion to TK 402.07 billion and Dhaka Bank’s deposits rose from TK 283.20 billion to TK 299.90 billion.

During the same period, deposits also increased at AB Bank, Community Bank, Eastern Bank, Midland Bank, Madhumati Bank, NCC Bank, NRB Bank, NRBC Bank, One Bank, Standard Bank, Shahjalal Islami Bank and Trust Bank.

According to officials at various banks, despite weak financial conditions, deposits have risen in certain banks since the change in government.

The reasons, according to them, are reduced opportunities for irregularities, or ownership links to the politics of the Bangladesh Nationalist Party (BNP), which has facilitated the inflow of both public and private deposits.