Bank deposits rise to Tk20.79 lakh crore in June

Bank deposits continued to grow in the first half of 2026, reaching Tk20.79 lakh crore in June from around Tk19.67 lakh crore in January. 

However, deposit growth, which accelerated in the first few months of the year, began to lose momentum towards the end of the period.

According to Bangladesh Bank data, deposit growth stood at 10.45% year-on-year in January, rising to 11.28% in February and 11.76% in March. 

It climbed further to 11.99% in April before easing to 11.41% in May and 10.74% in June.

The figures indicate a strong recovery in deposit mobilisation early in the year, followed by a moderation in the second quarter.

In January, total deposits stood at around Tk19.67 lakh crore, up 10.45% from a year earlier. Although the growth rate was lower than the 11.10% recorded in December 2025, it remained in double digits.

Higher remittance inflows and comparatively high deposit rates were among the key factors supporting deposit growth during the period, as customers were encouraged to keep more funds in banks amid elevated interest rates.

Deposits rose to around Tk19.95 lakh crore in February, with year-on-year growth accelerating to 11.28%. 

The upward trend continued in March, when total deposits reached around Tk20.32 lakh crore, registering 11.76% annual growth. Deposits increased by roughly Tk37,000 crore from February.

The stronger performance reflected higher deposit rates, increased remittance inflows and gradually improving confidence in the banking sector, which helped banks rebuild their deposit base after a period of sluggish growth.

The momentum continued into April, when annual deposit growth reached 11.99%, close to the 12% mark. Total deposits stood at around Tk20.38 lakh crore.

However, growth began to moderate in May. Total deposits rose to around Tk20.41 lakh crore, while year-on-year growth declined to 11.41%.

The slowdown became more pronounced in June. Although deposits increased by around Tk38,000 crore from May to Tk20.79 lakh crore, annual growth fell to 10.74%. Deposits stood at around Tk18.77 lakh crore in June 2025.

Mostafa K Mujeri, former chief economist of Bangladesh Bank, said the steady growth in deposits was a positive sign for liquidity and public confidence in the banking system, but the recent slowdown alongside weak private-sector credit demand was a concern.

“The priority now should be to channel these growing deposits into productive investment. If credit demand remains subdued, banks may continue to face excess liquidity, limiting the broader economic impact of higher deposits,” he said.

The six-month trend shows that deposit growth accelerated from 10.45% in January to 11.99% in April, an increase of more than 1.5 percentage points in three months. 

It then declined to 11.41% in May and 10.74% in June, indicating that the momentum was not sustained.

Bankers said the decline in the growth rate did not mean deposits had fallen. 

Rather, deposits continued to increase in absolute terms but at a slower pace than in the corresponding period of the previous year.

Continued growth in remittance inflows also helped strengthen bank deposits, as a significant portion of remitted funds enters the formal banking channel before being transferred to beneficiaries or retained in deposit accounts.

At the same time, relatively high deposit rates have encouraged households and businesses to keep more money in banks rather than hold cash.

A key concern for banks, however, is that deposit growth has not been matched by a corresponding increase in credit demand.

While customers are depositing more money, private-sector demand for loans remains relatively weak. As a result, a growing portion of banks’ funds remains unused, pushing excess liquidity above Tk4 lakh crore.

The situation presents a challenge for banks. Stronger deposit mobilisation improves their funding base and liquidity position, but weak lending demand limits their ability to deploy those funds efficiently through loans and investments.