Wage earners sent home over 2 billion (USD) in April, according to the latest report by Bangladesh Bank released on Thursday.
Private shariah-based Islami Bank Bangladesh Limited (IBBL) emerged as the top recipient, receiving over $541 million alone, highlighting its strong presence among Bangladeshi expatriates.
Social Islami Bank ranked second highest with $148 million, and BRAC Bank secured the third position with $121 million.
Among the recipient banks, private commercial banks continued to be the main channel for inward remittances, accounting for over $1.7 billion. State-owned banks and specialized banks like Bangladesh Krishi Bank played a smaller role, receiving $211.27 million and $97.23 million, respectively. Foreign commercial banks contributed a marginal amount, totaling only $6.48 million.
Several banks, including Bangladesh Development Bank and Community Bank Bangladesh, did not receive any remittance inflows in April. This suggests a need for these banks to expand their services and attract overseas customers.
A senior BB official said the government is giving a 2.5 per cent cash incentive, and the commercial banks are also giving the same 2.5 per cent cash incentives. As a result, the remitters are getting a total 5 per cent cash incentive, which is encouraging remitters to send their money through legal channels.
He attributed Islami Banks success to its extensive network of branches abroad and competitive exchange rates. They also pointed out that private banks, in general, have been more proactive in marketing their remittance services to expatriate communities.
In FY 2022-23, inward remittances recorded a total inflow of USD 21.61 billion, and in the running fiscal year so far, received USD 19.12 billion, indicating that by the end of June, the amount may exceed last years figure.
However, theres a positive trend within the current fiscal year, with a gradual increase in remittance inflows month-on-month. April 2024 saw a remittance inflow of USD 1.91 billion, which is higher than in previous months, indicating a potential rise in the coming months.
Its important to note that the exceptionally high remittance inflow of FY 2020-21, at USD 24.78 billion, was likely due to the global pandemic as expatriates sent funds back home. The subsequent years saw a natural correction.
While the year-on-year comparison shows a decline, the month-on-month rise in FY 2023-24 paints a cautiously optimistic picture. Experts believe that with strategic government initiatives and a possible global economic upswing, remittance inflows may see a further increase in the coming months.
