Deposits in non-bank financial institutions (NBFIs) declined by Tk525 crore in the first quarter of this year, as reported by the central bank. By the end of March, total deposits stood at Tk44,305 crore, reflecting a 1.37% decrease compared to the previous quarter. This decline is attributed to several factors including concerns over high classified loan amounts in certain NBFIs, which have impacted their ability to repay depositors. Additionally, limited interest rates on deposits, capped at 12.55% by the central bank, have made it challenging for NBFIs to attract new deposits amidst competition from higher rates offered by banks and government securities. Despite the decrease in deposits, loans in the NBFI sector increased by Tk770 crore to Tk74,529 crore during the same period. Notably, a significant number of accounts have closed, with 3,880 accounts shutting down in the first quarter alone, reflecting a broader trend of decreasing confidence and withdrawals among depositors.
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