Deposit growth in Bangladesh’s banking sector fell to single digits at 9.99% in March, the lowest in five months. High inflation, confidence crisis, and seasonal spending prompted withdrawals of over Tk 3,500 crore from banks in March alone.
Cash outside banks increased by TK 15,252 crores in five months, reaching 2 lakh 61 thousand 195 crores by March. Despite interest rate reductions to stimulate private investment, deposit interest rates also dropped significantly, contributing to decreased deposit inflows. The banking sector saw credit growth of 1.4% in March, with total credit and investment reaching 20 lakh 11 thousand 53 crores. The trend reflects challenges in attracting deposits amidst inflationary pressures and changing market interest rates, prompting increased cash holdings outside the banking system.
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