NBFCs win back depositors as reforms boost confidence

Customer confidence in the country's non-bank financial companies (NBFCs) appears to be gradually recovering, as both deposits and the number of depositors saw a rise in the first quarter of 2026, driven by reform initiatives introduced after the political transition in August 2024.
According to the latest data from Bangladesh Bank (BB), deposits in the NBFC sector rose by Tk 4.31 billion, or 0.84 per cent, during the January-March period of 2026, compared with the previous October-December 2025 quarter.
Concurrently, the depositor base surged by 8.99 per cent, adding 51,344 new accounts to reach a total of 622,726 by the end of the first quarter.
The improvement comes amid ongoing efforts by the central bank to restructure the sector. Bangladesh Bank has already decided to liquidate five financially distressed NBFCs that failed to repay depositors, while four others have been granted additional time to recover.
People familiar with the development said reforms undertaken after August 5, 2024 -- similar to those introduced in the banking sector -- have helped restore public confidence in NBFCs. As a result, deposits and depositor numbers have been rising steadily since early 2025.
BB data show that total deposits in NBFCs reached Tk 515.59 billion at the end of March 2026, up from Tk 511.27 billion at the end of December 2025. This represents an increase of Tk 4.31 billion within three months.
The sector has maintained a positive growth trajectory over the past year. Deposits increased to Tk 497.74 billion at the end of June 2025 from Tk 494.88 billion at the end of March 2025, registering quarterly growth of 0.58 per cent.
The amount rose further by 1.91 per cent to Tk 507.23 billion by the end of September 2025 and increased by another 0.80 per cent to Tk 511.27 billion at the end of December.
The number of depositors also continued its upward trend. Deposit accounts in the NBFC sector stood at 622,726 at the end of March 2026, compared with 571,382 at the end of December 2025, according to the central bank's report.
The depositor base had been expanding throughout 2025 as well. The number of accounts rose to 480,163 at the end of June from 440,907 at the end of March, reflecting growth of 8.90 per cent. It increased further by 12.63 per cent to 540,825 by the end of September and reached 571,382 at the end of December, up 5.56 per cent from the previous quarter.
Despite the influx of deposits, lending activity in the sector weakened during the first quarter of 2026.
Outstanding loans declined to Tk 784.25 billion at the end of March 2026 as against Tk 788.29 billion at the end of December 2025, a decrease of Tk 4.04 billion or 0.51 per cent.

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