Crore-taka bank accounts fall by 1,657 in July-September

The number of bank accounts in Bangladesh holding deposits of at least Tk 1 crore decreased by 1,657 in the July-September quarter of 2024, according to Bangladesh Bank data.

During this period, deposits in these accounts decreased by Taka 26,187 crore.

At the end of September, there were 1.17 lakh crore-taka accounts, up from 1.19 lakh at the end of June. Total deposits in these accounts stood at Tk 7.47 lakh crore in September, compared to Tk 7.73 lakh crore at the end of June.

Bankers attribute the decline to several factors, including political uncertainty following the fall of the Awami League-led government on August 5. Many people reportedly withdrew large sums of money from their accounts during this period.

“Inflationary pressures have also significantly increased household expenses and business operating costs, which may have contributed to a reduction in deposits, particularly in institutional accounts,” said Syed Mahbubur Rahman, managing director and Chairman and Managing Director of Mutual Trust Bank, to The Business Standard.

He added that customer confidence in the banking sector has declined in recent months.

“We are actively working to restore confidence. Moreover, higher yields on treasury bills and government bonds have attracted many large depositors, leading to a decline in crore-taka accounts,” he said.

A sector-wise analysis of central bank data shows that the crore-taka accounts of individuals and businesses have declined.

During the July-September quarter, the number of individual crore-taka accounts decreased by 620 and stood at 33,861. Additionally, the amount of deposits in these accounts decreased by Tk8,923 crore and is raised to Tk 83,385 crore.

After the government fell on August 5, reforms began in the banking sector as well as other sectors. Meanwhile, customers withdrew their deposits from their accounts due to rumors that some banks were going to close. The rumors particularly affected Islamic banks based on Sharia law. Furthermore, bankers said there were also incidents of influential businessmen withdrawing their deposits from banks.