The total deposit liabilities, excluding interbank items, of the country's 61 scheduled banks increased by 4.34 per cent to about Tk 18.39 trillion during the second quarter (Q2) of 2024, compared to the first quarter (Q1).
Bankers attributed the growth in April-June quarter (Q2) to better deposit rates.
The deposit growth during the January-March quarter (Q1) was recorded at less than 1.0 per cent, reaching over Tk 17.62 trillion, according to a latest Bangladesh Bank (BB) report released on Wednesday.
It highlighted that urban deposits, which make up more than 84 per cent of total deposits, grew by 4.32 per cent to about Tk 15.56 trillion by the end of June 2024.
Meanwhile, rural deposits, accounting for over 15 per cent of total deposits, increased by 4.47 per cent to about Tk 2.83 trillion.
Among the three key categories of deposits, fixed deposits that hold the largest share grew by 3.86 per cent to Tk 8.22 trillion during the April-June period.
Savings deposits, the second-largest category, rose by 2.43 per cent to Tk 3.82 trillion, according to the report.
Bankers say this growth is primarily driven by rising interest rates on deposits.
The weighted average interest rate on deposits across all banks stood at 5.51 per cent, while the weighted average rate on fixed deposit receipts (FDR) for terms of three years or more was 9.75 per cent, the BB report said.
"In my view, the interest rate has been increasing due to reforms in the interest rate regime," said Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank (MTB), a privately-owned commercial bank.
He noted that deposits are mainly flowing to banks with strong track records and that many banks are actively campaigning to strengthen their deposit base.
Bangladesh Bank Governor Ahsan H. Mansur recently stated that deposits in banks are rising, while money outside the banking sector has decreased by Tk 450 billion in recent months, reflecting increased confidence in the banking system.
"The good news is that some of the money is returning to the banking sector," he added.
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