In the April-June quarter, nonbank finance companies (NBFCs) in Bangladesh experienced a paradoxical rise in total deposits, which grew by nearly 2% to Tk 45.12 billion, despite a drop of over 11% in the number of deposit accounts, totaling 0.3797 million. This decline was largely due to a fall in individual accounts, with male accounts decreasing by 14.5% and female accounts by 8.2%. In contrast, deposits from enterprises, particularly those owned by females, drove the overall deposit growth, as fixed deposits (which make up nearly 97% of total deposits) rose by around 2%. Higher interest rates offered by NBFCs compared to banks have made fixed deposit receipts (FDRs) more appealing to businesses. However, some experts attribute the decline in individual accounts to underperformance among certain finance companies, prompting depositors to seek alternatives. While deposit growth is positive, lending has stagnated, increasing by only 0.5% amid slowing business activities.
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