Deposits in banks rose by 8.81% in May, which was the highest in the last 11 months as customer confidence returned amid high inflation.
Deposits stood at Tk1,563,000 crore at the end of May with new deposits of Tk15,300 crore, according to Bangladesh Bank data.
The banking sector began borrowing money through repo from the central bank earlier this year.
As a result, deposit growth started to pick up from January and it peaked in May.
The central bank said loan growth in the banking sector fell to 11.72% in May.
It has been on a downward trend for the past few months. Loan growth was 13.26% last February.
However, the creation of new loans also decreased due to the decrease in opening of import letters of credit (LCs).
According to central bank data, the interest rate on deposits in the banking sector increased to 4.41% in May, up from 4.38% in April.
The landing rate increased by 3 basis points to 7.32% in May compared to April.
On January 15 this year, the central bank lifted the deposit rate cap of 6% and allowed a 3% interest rate hike on consumer loans.
Subsequently, commercial banks increased the deposit rate to attract more deposits.
Central bank data show that the amount of money in the hands of people decreased by Tk7,500 crore and stood at Tk256,000 crore in May from Tk263,000 crore in April.