Remittances via MFS Reach Tk 11.02 Billion in October

No-frill account (NFA) deposits fell by 4.01% to Tk 45.32 billion in Q3 2024, raising concerns about reduced credit access for low-income groups and small businesses. NFAs, with initial deposits as low as Tk 10/50/100, are key to promoting financial inclusion, enabling savings, credit, and remittances for marginalized communities. At the end of September, 32.33 million NFAs held over Tk 67.66 billion, with Tk 10 accounts under social safety net programs comprising 37.3%.

EXIM Bank has decided to abandon its proposed merger with Padma Bank, reversing its earlier plan from March 2024. The decision, made during a December 23 board meeting, was disclosed on the Dhaka Stock Exchange.

First Security Islami Bank (FSIB) has terminated Deputy Managing Director Md Akmal Hossain due to alleged irregularities during his tenure at Social Islami Bank Limited (SIBL). The dismissal letter, signed by FSIB's Managing Director Syed Waseque Md Ali, cited official communication from SIBL confirming Hossain's discharge on December 19.

Islami Bank Bangladesh's Managing Director, Mohammed Monirul Moula, has been absent from his workplace since December 19 after being forced to leave by a group of officials. According to an unnamed additional managing director, Moula has been working from home due to "internal issues."

Companies linked to the S Alam Group took out 56% of the total loans disbursed by First Security Islami Bank (FSIB), amounting to Tk 33,791 crore out of Tk 60,272 crore as of September. An internal inspection revealed significant irregularities in loan disbursement, including excessive investment, overvalued collateral, and improper loan rescheduling.

Inward remittances through Mobile Financial Services (MFS) like Nagad, bKash, Rocket, and Upay have surged, reflecting their growing popularity. In October 2024, Tk. 11.02 billion in remittances were processed through MFS platforms, with an e-money balance of Tk. 139.22 billion. This marked a 9.37% increase from September.