Despite a declining trend in inflation since July 2024 and even as interest rates remain high, there hasn’t been any improvement in the deposit growth, which remained below 8% at the end of June and hit 7.77% growth.
This downward spiral began during the July Uprising in 2024.
Experts suggest that, considering the overall state of the economy, the growth in deposits should be at least 10%.
According to Bangladesh Bank's latest data, total deposits in the banking sector stood at Tk1,878,000 crore as of the end of June 2025, marking a 7.77% year-on-year (YOY) growth.
Data analysis showed that the trend of bank deposits was around 7.5% to 8.5% in the last 12 months. May 7.73%, April 8.21%, March 8.51%, February 7.88%, and January 8.28%.
In December 2024, bank deposit growth was 7.44%; in November, 7.46%; in October, 7.28%; in September, 7.26%; in August, 7.02%; and in July, 7.88%.
The lowest growth in the past 18 months was recorded in August 2024 at 7.02%.
Data analysis also revealed that, before the July revaluation, this trend was above 9%.
In June 2024, the country's bank deposit growth was 9.25%, which was 10.43% in February 2024 and 10.57% in January.
Zahid Hussain, former lead economist at the World Bank's Dhaka office, told Dhaka Tribune that there is no significant change in people's income.
"Usually, if business and trade are strong, current deposits rise. And if income is good, 'fixed deposits' increase.”
He also warned that if the economy does not turn around, then deposit growth—a key economic driver—will remain stagnant.
High interests
Many banks are currently offering soaring interest rates of 9-11% on deposits. Several banks facing a liquidity crunch are running campaigns that offer interest rates of up to 13% on deposits.
These incentives have yet to drum up depositor interest to any significant degree.
However, at the same time, loan interest also goes high, which hits the private sector credit growth, the lowest level in a decade, standing at 6.49% at the end of June.
The central bank’s website holds credit growth data from 2015, which shows that June recorded the lowest rate in that period.
The second-lowest rate was in February this year, at 6.82%.
Several senior officials of the Bangladesh Bank say that generally when loans from banks increase, the growth in deposits increases. This is because when loans are given to the government and the private sector, the money returns to the bank as deposits, and money circulation increases.
Inflation eases
Economists and senior bankers say that usually when inflation decreases, deposits increase. But due to the recent stagnation in investment, new employment is not being created. As a result, people's income is not increasing, which is directly limiting their saving capacity.
According to the Bangladesh Bureau of Statistics (BBS), inflation goes up a little to 8.55% in July, breaking a three-month easing trend. Before this, inflation was 9.35% in March, 9.17% in April, 9.05% in May, and 8.48% in June.
The inflation rate in July 2024 was 11.66%, which was a 12-year high.
Money in circulation
At the same time, money in circulation, or currency outside banks, also increased.
At the end of June 2025, the amount of cash outside banks stood at Tk296,000 crore, which is a 2.02% year-on-year increase from Tk290,000 crore.
According to the central bank, the flow of currency outside banks has been increasing continuously since October 2023.
At that time, currency outside banks was Tk246,000 crore.
