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Dhaka Tribune

Accounts with over 1C hold 42.63% of country's total deposits

The number of bank accounts with above Tk1 crore in deposits has increased by 7,970 within a year

Update : 21 Mar 2023, 09:26 PM

The number of bank accounts with more than Tk1 crore, as well as their deposits are increasing in the banking sector.

As of December 2022, Tk677,605 crore or 42.63% of the total deposits in the banking sector are deposited by those account holders alone.

According to the Bangladesh Bank data, deposits in banks stood at Tk1,588,010.57 crore at the end of December 2022, while the number of accounts increased to 1.36 million. 

According to Bangladesh Bank's latest report, the total number of bank accounts with above Tk1 crore in deposits in the country reached 109,946 at the end of December 2022. 

However, it was 106,520 at the end of the September quarter.

Data shows the number of bank accounts with above Tk1 crore in deposits in the country has increased by 7,970 within a year from December 2021 to December 2022. 

This number increased by 16,056 in just two years and 26,107 in three years.

Requesting anonymity, the CEO of a bank told Dhaka Tribune: “At a time when the overall bank deposits have been on the decline due to inflation, the number of accounts having over Tk1 crore has been on the rise.” 

Dr Zahid Hussain, lead economist consultant for the World Bank said that a growing number of millionaires is definitely “good news.”

“But we have to see if the bank deposits of the middle class, who were hit hardest by the pandemic, have also increased or not,” he added.

However, Hussain believes that an increase in the number of millionaires does not necessarily mean economic development. 

“It was seen in the past that when someone has lots of money in their account, they send some money to their family members' accounts,” he further said.

An official of the Bangladesh Bank, seeking anonymity told Dhaka Tribune: “An account holding crores does not necessarily mean it is an account of a millionaire as the central bank data includes accounts of many institutions as well. 

“There is no limit on how many bank accounts individuals and organizations can open. As a result, an organization or an individual has multiple accounts. There are also accounts holding crores of taka that belong to various government institutions and organizations,” he added.

Accounts with above Tk1 crore 

According to the data of the central bank, till December 2022, the number of accounts of depositors between Tk1 crore to Tk5 crore has reached 87,167.  In those accounts, the amount of money deposited is Tk180,690 crore. 

There are 11,945 accounts between Tk5 crore to Tk10 crore and the amount of deposit is Tk84,288 crore.

Besides, there are 3,845 accounts between Tk10 crore to Tk15 crore; 1,833 accounts between Tk15 crore to Tk20 crore; 1,143 accounts between Tk20 crore to Tk25 crore.

Meanwhile, 887 accounts have Tk25 to Tk30 crore; 472 accounts between Tk30 to Tk35 crore; 315 accounts between Tk35 crore to Tk40 crore depositors. There are 577 accounts between Tk40 crore to Tk50 crore. 

The number of accounts with deposits of more than Tk50 crore stands at 1,762. 

Total deposits of banks

Total deposit liabilities (excluding interbank items) of the scheduled banks increased by Tk11,639.91 crore or 0.74% to Tk1,588,010.57 crore during the Oct-Dec quarter of 2022, as compared to an increase of Tk2,547.34 crore or 0.16% and Tk49,584.43 crore or 3.39% in the previous quarter (Jul-Sep 2022) and the corresponding quarter (Oct-Dec, 2021) of the last year respectively. 

The increase in deposits during the quarter was due to an increase in urban deposits by Tk15,934.51 crore or 1.29% to Tk1,250,637.57 crore and a decrease in rural deposits by Tk4,294.60 crore or 1.26% to Tk337,373.01 crore as compared to the previous quarter. 

The share of urban deposits to total deposits at the end of the quarter Oct-Dec, 2022 was 78.75% as compared to 78.33% at the end of the preceding quarter (Jul-Sep, 2022) and 78.49% at the end of the corresponding quarter (Oct-Dec, 2021) of the last year. 

At the end of December 2022, banks' deposits registered an increase of Tk75,538.01 crore or 4.99% over December 2021. 

Whereas bank deposits in December 2021 increased by Tk133,322.11 crore or 9.67% over December 2020.

Banks' credit 

Banks' advances increased by Tk54,797.92 crore or 4.11% to Tk1,387,703.54 crore during the Oct-Dec 2022 quarter as compared to an increase of Tk34,246.29 crore or 2.64% and Tk52,622.62 crore or 4.54% respectively during the preceding quarter (Jul-Sep 2022) and the corresponding quarter (Oct-Dec 2021) of the last year. 

Banks' advances in urban areas increased by Tk39,203.52 crore or 3.31% to Tk1,224,945.55 crore and in rural areas increased by Tk15,594.40 crore or 10.60% to Tk162,757.99 crore during the quarter under review. 

At the end of December 2022, banks' advances exhibited a sharp increase by Tk177,114.48 crore or 14.63% over December 2021. 

Whereas banks' advances of December 2021 increased by Tk114,280.23 crore or 10.42% over December 2020.

However, credit means loans given out to borrowers by banks. Credits are assets of the bank.

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