Deposits and investments in the Islamic banking system saw steady year-on-year growth at the end of 2025, although quarterly trends point to a moderation in momentum amid broader economic pressures.
Deposits rose modestly in the final quarter of 2025, while export earnings declined and employment dropped, reflecting a mixed performance across key indicators.
According to the latest Bangladesh Bank (BB) data, total deposits at Islamic banks stood at Tk 4.81 trillion at the end of December 2025, marking an increase of Tk 108.76 billion (2.31 per cent) from Tk 4.70 trillion recorded at the end of September.
On a year-on-year basis, deposits grew by Tk 414.34 billion (9.42 per cent).
Total deposits in the Islamic banking system were Tk 4.40 trillion at the end of December 2024.
Islamic banks accounted for 24.38 per cent of total deposits in the banking sector during the said period.
Investment, commonly referred to as loans and advances, reached Tk 5.25 trillion at the end of December, up by Tk 74.89 billion (1.45 per cent) from the previous quarter.
Year-on-year, investment rose by Tk 457.61 billion (9.55 per cent).
At the end of December 2024, total investment in the Islamic banking system reached Tk 4.79 trillion.
The share of Islamic banks in total loans and advances of the banking sector stood at 29.10 per cent, the central bank data showed.
However, the investment-deposit ratio (IDR) declined to 0.94, down from 0.96 in September and 0.97 a year earlier, indicating a cautious lending stance.
External trade performance showed some weakness during the quarter.
Export receipts handled by Islamic banks fell by Tk 39.97 billion (11.25 per cent) to Tk 315.31 billion during the October-December period compared to the previous quarter.
Total export receipts by the Islamic banks stood at Tk 388.22 billion during October-December 2024.
Import payments also declined by 4.42 per cent to Tk 470.07 billion during the period compared to the previous quarter.
Total import payments by the Islamic banking system reached Tk 533.35 billion during October-December 2024.
In contrast, remittance inflows mobilised by these banks rose by 5.36 per cent to Tk 275.38 billion during the period compared to the previous quarter, offering some support to overall liquidity.
Total remittances mobilised by Islamic banks stood at Tk 319.14 billion at the end of December 2024.
The branch network of Islamic banking continued to expand, with the number of branches, including those of conventional banks, reaching 1,743 at the end of December 2025.
The number of Islamic banking windows also increased to 976.
Despite the expansion, total employment in the sector fell to 47,460, down from 50,944 in September and 52,565 a year earlier.
Analysts stressed the need for strengthening trade financing and improving efficiency in fund utilisation to sustain growth in the Islamic banking segment.
They said the banks should focus more on diversifying investment portfolios and supporting export-oriented sectors to stabilise earnings and enhance resilience in the coming quarters.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said the steady year-on-year growth in deposits and investment reflected underlying resilience in the Islamic banking sector despite macroeconomic challenges. However, he noted that the slower quarterly growth signalled a cautious approach by banks amid liquidity pressures and subdued credit demand, suggesting the need for measures to sustain momentum in the coming months.
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