Struggling non-bank financial institutions (NBFIs) witnessed a sharp rebound with increased deposits in the last quarter (Q4) of FY23.
Not only did the deposits increase, but the loans and advances distributed by the NBFIs also saw a 1.68% increase in the April-June period of FY23 from the previous quarter, according to Bangladesh Bank's latest data.
The cost of funds continued to grow, while the spread between deposit and advance rates hit historical lows at 0.16% in July 2023.
According to the latest statistics of the Bangladesh Bank (BB) released on Wednesday, the total deposits (excluding inter-NBFIs) of the sector increased by Tk984.3 crore or 2.25% to Tk44,683 crore during April-June 2023 compared to January-March 2023.
On the other hand, total loans and advances by NBFIs increased by around Tk1,200 crore or 1.68% to Tk72,439 crore during Q4 of FY23, compared to the previous quarter, showed BB data.
Whereas loans and advances in public NBFIs increased by Tk366 crore or 3.61% to Tk10,503 crore, they increased by Tk833 crore or 1.36% to Tk61,936 crore in private NBFIs during the April-June period of 2023.
A breakdown by types of deposit accounts revealed that the share of fixed deposits decreased from 97.32% at the end of January-March in 2023 to 96.89% at the end of April-June 2023.
The fixed deposits increased by Tk764 crore to reach Tk43,293 crore at the end of Q4 of FY23 compared to the immediate past quarter.
The lion's share of deposits in NBFIs came from the private sector (92.46%), while the remaining portion was received from the public sector.
