The country's Islamic banks saw steady growth in deposits, assets and key financial indicators in March 2026, according to Bangladesh Bank (BB) data.
The total deposits in Islamic banks stood at Tk 4.79 trillion in March 2026, up from Tk 4.76 trillion in February 2026, according to Bangladesh Bank (BB) data.
On a year-on-year basis, the amount of deposits increased by 9.22 per cent over that of Tk 4.39 trillion in March 2025, indicating gradual stabilisation in the sector after recent turbulence.
However, the volume of deposits in conventional banks rose more sharply to Tk 17.04 trillion in March 2026 from Tk 15.12 trillion a year earlier, reflecting a 12.72 per cent annual increase and highlighting a relative shift in depositor behaviour across the banking system.
Islamic banks continued to rely heavily on Mudaraba-based deposits, which account for around 86.61 per cent of total deposits, while the private sector contributes around 90.48 per cent of the deposit base.
Investments by Islamic banks remained broadly stable at Tk 5.91 trillion in March 2026, compared to Tk 5.88 trillion in February 2026.
On a year-on-year basis, their investments rose by 6.85 per cent from Tk 5.53 trillion in March 2025.
Investment portfolios remained concentrated in Bai-Murabaha with 44.20 per cent), followed by HPSM 17.34 per cent and Bai-Muajjal 17.26 per cent, indicating continued dependence on a limited set of financing structures. Sectoral exposure is largely focused on industry and trade and commerce.
Total assets of Islamic banks also rose to Tk 9.46 trillion in March 2026, up from Tk 9.34 trillion in February 2026, showing a monthly growth of 1.26 per cent.
On a year-on-year basis, their assets increased 5.95 per cent from Tk 8.93 trillion in March 2025.
External trade-related indicators showed mixed trends. Export receipts handled by Islamic banks increased to USD $ 617 million in March 2026 from USD $604 million in February 2026, a monthly rise of 2.11 per cent.
However, on a year-on-year basis, export receipts declined 16.94 per cent from USD $742 million in March 2025.
Import payments through Islamic banks stood at USD $870 million in March 2026, up 2.16 per cent from the previous month but down 25.28 per cent year-on-year.
Remittance inflows rose to USD $701 million in March 2026 from USD $661 million in February 2026, marking a 6.02 per cent monthly increase, although down 3.09 per cent compared to March 2025.
In agent banking, Islamic banks reported deposits of Tk 272 billion in March 2026, up from Tk 269 billion in February 2026. On a year-on-year basis, deposits increased 22.96 per cent from Tk 221 billion in March 2025. Islamic banks accounted for 53.75 per cent of total agent banking deposits. The number of specialised Islamic banking employees stood at 580 in March 2026, slightly down from 582 in February 2026, but up 3.94 per cent from 558 in March 2025.
Experts said Islamic banks are showing signs of stabilisation, driven by growth in deposits and continued demand for Shariah-based banking services despite recent challenges.
However, they said slower growth in investments and trade transactions suggests banks remain cautious amid economic uncertainty, underscoring the need for stronger governance, transparency and regulatory oversight.
"Islamic banks in Bangladesh are showing signs of stabilisation after a difficult period, but restoring long-term confidence will depend on stronger governance, transparency and regulatory oversight. The latest data suggest the sector remains resilient, particularly in deposits, agent banking and Shariah-based financing demand," said Masrur Reaz, chairman of Policy Exchange Bangladesh.
He said the slower growth in investments and external trade transactions indicates that Islamic banks are still operating cautiously amid broader macroeconomic uncertainty.
"The sector now needs stronger institutional reforms and improved risk management to sustain growth and compete effectively with conventional banks," he added.
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