Banks in Bangladesh are expanding into rural areas to bring the yet-unbanked people under financial inclusion to help the economy grow.
According to data available with the Bangladesh Bank (BB), both private and public banks opened 11,222 branches countrywide as of October this year.
Of the branches, 5,400 were opened in rural areas and 5,822 in urban areas.
The total number of branches was 8,685 as of December 2013, according to the central bank statistics.
Banks have continued to enhance their penetration of rural areas in line with a central bank guideline.
The regulator earlier introduced a guideline to bring the yet-to-be-banked people under the banking network.
As per the policy, 50% of the bank branches opened in a calendar year must be in rural areas.
Rural banks have traditionally supported local economic development by supplying funds to local businesses.
Commercial banks' willingness to deliver agricultural and rural loans efficiently will play a pivotal role in maintaining and expanding the rural economy.
A good number of bank branches are currently powered by solar energy.
Sixty-one banks are now in operation in Bangladesh, including six state-owned, three scheduled, 43 private and nine foreign commercial banks, disclosed the BB data.
