Deposits in local non-banking financial institutions (NBFIs) dropped 1.19%, or Tk 500 crore in the end of September, compared to June, as the sector is suffering a trust deficit.
Bangladesh Bank data showed that the deposits in the NBFIs fell to Tk41,585.48 crore at the end of September quarter of 2022 from Tk42,086.4 crore in deposits at the end of June quarter.
The deposits were Tk42,790 crore in July-September of 2021.
The NBFIs suffered a deposit contraction at a time when the banks posted growth in deposits in the same period.
The total deposits, excluding interbank items, of the scheduled banks increased by Tk113,000 crore, or 7.76%, to Tk1,576,370 crore in the July-September quarter compared with that of Tk1,462,888 crore in the same period in the past year.
The total bank deposits were Tk1,573,823 crore in April-June 2022.
However, the total loans by the NBFIs increased to Tk69,306.27 crore at the end of September 2022 from that of Tk66,367.89 crore at the end of September in the past year.
The total loans of the sector in September 2022 also increased from Tk69,080.47 crore in June 2022.
The share of fixed deposits decreased from 97.37% in the April-June period to 97.30% in the July-September period.
The fixed deposits decreased by Tk517.98 crore, or 1.26%, to Tk40,462.65 crore at the end of September compared with that in the previous quarter.
In June 2020, the central bank reduced the CRR for the entities by one percentage point amid a liquidity crisis in the country's financial sector, allowing them to utilize around Tk350 crore, kept as CRR with the BB, for income generation purposes.
Though the deposit interest rate in the NBFIs is still far better than the banks, the NBFIs could not capitalize the situation to improve their liquidity base.
Most of the banks are offering interest rates below 6% while many of the NBFIs are offering around 10% interest against their deposit products.
