Bank branches keep rising in numbers
FE REPORT | Sunday, 10 December 2023
Scheduled banks are expanding into rural areas to bring the yet-unbanked people under financial inclusion to help economy grow, people in the banking system said.
According to data available with the Bangladesh Bank (BB), both private and public banks have opened 11,222 branches countrywide as of October 2023.
Of the branches, 5,400 have been opened in rural areas and 5,822 in urban areas.
"Banks have been increasing their footprint rapidly. This has been possible mainly due to efforts made by the central bank," said a senior banker.
A good number of banks are providing servicing through opening sub-branches different potential areas as well as agent banking across the country, he added.
The total number of branches was 8,685 as of December 2013, according to the central bank statistics.
"The BB is regularly trying to deliver banking services to rural areas for boosting financial inclusion to alleviate poverty," said a senior banker.
Banks have continued to enhance their penetration of rural areas in line with a central bank guideline.
The regulator earlier introduced a guideline to bring the yet-to-be-banked people under the banking network.
As per the policy, 50 per cent of the bank branches opened in a calendar year must be in rural areas.
"The authorities have put the banking sector on a sound footing. This has been possible because of the efforts made by the Bangladesh Bank," said a private banker.
Rural banks have traditionally supported local economic development by supplying funds to local businesses.
Commercial banks' willingness to deliver agricultural and rural loans efficiently will play a pivotal role in maintaining and expanding rural economy.
An official said the banking sector is contributing to the rapid growth of rural economy, which eventually boosts the overall national economy.
Innovations in mobile banking in addition to the commercial banks' presence have revolutionised financial transactions in rural areas, he added.
Currently, more than 80 per cent of the people are receiving banking services, a BB official said.
A good number of bank branches are currently powered by solar energy.
Sixty-one banks are now in operation in Bangladesh, including six state-owned, three scheduled, 43 private and 09 foreign commercial banks, disclosed the BB data.