Banking Sector Curbs Lending as Investment Confidence Drops

United Commercial Bank (UCB) is conducting a forensic audit to investigate the actions of its previous board of directors and management, announced new chairman Sharif Zahir. This audit follows the reconstitution of the bank's board by the Bangladesh Bank on August 27 and the resignation of managing director Arif Quadri.

In the first three months of the current fiscal year, the Bangladesh government nearly doubled its borrowing from commercial banks, increasing it to Tk47,209 crore from Tk24,474 crore last year, a 93% rise. This spike is primarily due to lower revenue collection and attractive high interest rates on treasury bills and bonds, as demand for private sector loans declines.

Bangladesh's banking sector is experiencing a sharp decline in lending due to low investment confidence, worsened by the formation of an interim government. Investment has stagnated since 2022 amid a dollar crisis, high inflation, and political uncertainty.

DBH Finance PLC was recently honored with the ICSB National Corporate Governance Excellence Award in the financial institutions category. The award was presented at a ceremony held at a city hotel, where Nasimul Baten, Managing Director & CEO of DBH Finance, accepted the accolade from Dr. Salehuddin Ahmed, Adviser to the Ministries of Finance, Commerce, and Science and Technology.

BRAC Bank achieved a record net deposit growth of Tk 2,000 crore in September 2024, the highest single-month deposit growth by any branch network in Bangladesh. The milestone was celebrated at the bank's head office in Dhaka. Selim RF Hussain, the bank's CEO, attributed the growth to branch expansion, strategic repositioning, enhanced customer services, and digital banking solutions.

In August, Bangladeshi migrant workers sent home Tk 1,101.8 crore in remittances via mobile financial service (MFS) providers, marking the highest monthly receipts in five years and a 113% increase from Tk 515.4 crore in August 2023.