40 out of every Tk 100 in banks belongs to millionaires

Approximately 40 per cent of the total deposits in the government and private banks of the country are held in the accounts of millionaires. In other words, if we assume the total amount of money deposited in banks is 100 units, then 40 units are accounted for by millionaires. Meanwhile, accounts of people with less than a million often hold 56 per cent of the deposits.

Thus, 96 per cent of the total money deposited in banks is held by account holders who are either millionaires or have significant wealth. Conversely, although about 90 per cent of bank accounts are classified as small accounts with lesser amounts, these accounts only comprise 4 per cent of total deposits. However, accounts held by millionaires constitute less than 1 per cent of total bank accounts.

The statistics also include accounts from various government and private institutions, not just individual accounts. As a result, the deposit amount in institutional accounts is naturally higher compared to individual accounts, according to relevant experts.

According to the latest statistics on the banking sector released by Bangladesh Bank, the total amount of deposits in all banks at the end of March was Tk 21.58 trillion (2,158,025 crore). Of this, Tk 8.59 trillion (859,162 crore), or 39. 81 per cent of the total deposits, was held in accounts with deposits ranging from Tk 10 million (1 crore) to over 500 million (50 crore).

On the other hand, deposits in accounts with amounts ranging from Tk 100,000 (1 lakh) to Tk 9.9 million (99 lakh) amounted to Tk 12.09 trillion (12.9 lakh crore), which accounts for about 56 per cent of total deposits. Accounts with deposits ranging from Tk 1 to 99 thousand held Tk 894.71 billion (89.471 crore), which is just 4 per cent of the total deposits.

According to Bangladesh Bank data, there are 182.61 million (182,612,015) deposit accounts in the country's banking sector. Among these, the number of accounts with deposits over Tk 10 million (1 crore) to Tk 500 million (50 crore) is 136,485 (1.36 lakh). Accounts with deposits ranging from Tk 100,000 (1 lakh) to less than Tk 10 million (1 crore) is numbered at 19.1 million (19,118,180). Lastly, there are 163.3 million (163,357,350) accounts with deposits ranging from Tk 1 to less than Tk 100,000 (1 lakh).

In the last three months, a significant portion of new deposits has been directed to millionaire accounts. By the end of December, the amount of money deposited in millionaire accounts was Tk 8.36 trillion (836,370 crore). By the end of March, it increased to Tk 8.59 trillion (859,162 crore), meaning these accounts saw an increase of approximately Tk 227.92 billion (22,792 crore) in three months.

During the same period, total deposits in the banking sector increased by Tk 574.91 billion (57,491 crore), and the number of bank accounts increased by approximately 4.7 million (47 lakh). Thus, nearly half of the new deposits were added to millionaire accounts between December and March.

The deposits in the country's banks are categorised into 24 classes based on amount, as per Bangladesh Bank. Among them, there are five categories for deposits below Tk 100,000 (1 lakh). There are nine categories for deposits ranging from Tk 100,000 (1 lakh) to less than Tk 10 million (1 crore).

There are ten categories for deposits exceeding Tk 10 million (1 crore) to over Tk 500 million (50 crore). Collectively, the most substantial deposits are found in accounts of those with over Tk 500 million (50 crore).

As of the end of March, there were only 2,074 bank accounts with deposits exceeding Tk 500 million (50 crore). The total deposited amount was Tk 3.06 trillion (306,864 crore). This means, on average, each of these accounts held approximately Tk 1.48 billion (148 crore), with a large segment of these accounts belonging to billionaires. Among the account holders with million-plus amounts, there are both individuals and various institutions.

Industry analysts and experts associated with the banking sector suggest that alongside individual accounts, there are also accounts from various government and private institutions. The money deposited in institutional accounts is often several times more than in individual accounts. Notably, large government institutions, ministries, and various projects deposit substantial sums in banks.

Consequently, the amount of money in accounts with millions or billions is much higher compared to smaller accounts, even though more individual accounts belong to general people. Some individuals with more than a million in assets often deposit money in the bank under a company name, leading to higher deposit amounts in millionaire accounts.

Mustafa K Mujeri, former chief economist of Bangladesh Bank, mentioned to Prothom Alo that the statistics provided by Bangladesh Bank include both individual and institutional bank accounts.

Institutional accounts naturally contain more deposits than individual ones. It is because there are many government institutions with access to large amounts of money.Similarly, in the private sector, many businesses have accounts with billions. Thus, although numerically there are more general deposit accounts in terms of number, the amount of money in millionaire accounts is much higher, he said.

According to Bangladesh Bank statistics, in the three months from December to March, both the number of millionaire accounts and the deposits in them have increased. By the end of December, there were 134,044 (1.34 lakh) bank accounts with deposits over Tk 10 million (1 crore) to Tk 500 million (50 crore). This increased to 136,485 (1.36 lakh) by the end of March. In other words, the number of millionaire accounts increased by 2,441 in three months. During this period, deposits in this category grew by approximately Tk 227.92 billion (22,792 crore).

Bangladesh Bank data indicates that a significant portion of total deposit growth came from millionaire accounts. In these three months, total deposits in the banking sector increased by Tk 574.91 billion (57,491 crore), with nearly half of this growth linked to millionaire account holders. However, this growth is not uniform across all categories. Even within millionaire accounts, there is variation, with the most significant growth observed in accounts holding over Tk 500 million (50 crore).

By the end of December, there were 1,997 accounts in this class with deposits worth Tk 2.81 trillion (281,877 crore). By the end of March, these accounts grew to 2,074, with deposits reaching 3.06 trillion (306,864 crore). Therefore, over three months, deposits in this category increased by Tk 249.87 billion (24,987 crore), constituting the primary part of the growth in this millionaire category.

Conversely, deposits in some specific millionaire account categories have decreased. For example, accounts with deposits ranging from Tk 150 to 200 million (15 to 20 crore). By the end of December, the deposits in this category were Tk 390.1 billion (39,010 crore), which decreased to 371.5 billion (37,150 crore) by March. This means there was a reduction of Tk 18.6 billion (1,860 crore) in this category.

Additionally, the amount of money decreased for account categories with deposits ranging from Tk 200 to 250 million (20 to 25 crore), Tk 250 to 300 million (25 to 30 crore), Tk 350 to 400 million (35 to 40 crore), and Tk 400 to 500 million (40 to 50 crore) over three months.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, indicated that cash flow outside banks has increased recently. There are several reasons for this. Firstly, the first three months of the current year were during the election period and Holy Eid-ul-Fitr.

During the elections, a lot of money flows out of banks. Institutional money is also withdrawn during the Eid period. Furthermore, depositors' confidence in the banking sector has not fully recovered, leading many to withdraw money from banks to invest elsewhere.

According to Bangladesh Bank data, the least money is held in bank accounts with deposits ranging from Tk 5,000 to 10,000 among different categories. By the end of March, the total deposit in such accounts was Tk 44.97 billion (4,497 crore). By the end of December, this amount was 45.21 billion (4,521 crore), indicating a slight decline in deposits in this category over three months.

Moreover, the number of accounts in this category has also decreased. By the end of December, there were 6.34 million (6,341,618) accounts with Tk 5,000 to 10,000 deposits. By March, this reduced to 6.33 million (6,338,751).

On the other hand, in terms of bank account numbers, the most significant account class has deposits up to Tk 5,000. By the end of March, the number of accounts in this class was 137.79 million (137,793,512), with total deposits of Tk 73.98 billion (7,398 crore). By the end of December, there were 134.43 million (134,430,095) such accounts, with deposits of Tk 70.65 billion (7,065 crore).

Analysts and individuals associated with the banking sector say that although the number of general people's accounts is high in banks, they hold relatively less money. The majority in this class are students, employees, or low-income individuals. They use banks for salary or daily transactions but do not typically save large amounts. Many employees save monthly, participating in savings schemes with installments of Tk 5,000 to 10,000. This results in the most significant number of small account holdings.