As per latest quarterly (July-September) statistics released on Wednesday, the country's scheduled commercial banks reported a decline in total deposit liabilities during the quarter of 2024, showing shifting financial trends in both urban and rural areas.
This decrease indicates broader market challenges, yet the data from the central bank shows an annual increase in total deposits when compared to the same time last year.
Urban deposits experienced a slight drop, while rural deposits also fell, contributing to the overall decline. Despite these quarterly setbacks, banks recorded an increase in total deposits compared to September 2023, although the growth rate slowed compared to the previous year's figures.
Banks successfully expanded their loans and advances, demonstrating a positive trend in lending. While urban areas saw growth in loans, rural lending decreased. This expansion in credit highlights banks' ability to adapt and focus on lending opportunities even amid a challenging deposit environment.
During the quarter from July to September, total deposit liabilities, excluding interbank items, fell by Tk 135 billion or 0.73 per cent, totaling Tk 18.253 trillion. This decline contrasts with more robust growth from April to June, where deposits increased by Tk 765.34 billion or 4.34 per cent and a year-over-year comparison showing an increase of Tk 261.1 billion or 1.55 per cent
Both urban and rural deposits contributed to the overall decrease. Urban deposits saw a drop of Tk 115.11 billion or 0.74 per cent, reducing their total to Tk 15.441 trillion.
Meanwhile, rural deposits decreased by Tk 19.88 billion or 0.70 per cent bringing their total to Tk 2812.34 billion.
At the close of this quarter, urban deposits represented 84.59 per cent of total deposits, a slight dip from 84.60 per cent in the previous quarter.
Despite these quarterly challenges, total deposits at the end of September 2024 showed an annual increase of Tk 1122 billion or 6.55 per cent, compared to September 2023. It is noteworthy that this growth rate was lower than the 8.68 per cent increase experienced in the previous year.
Breaking down the contributions by bank category reveals that private banks reported a decrease in deposits by Tk41.2 billion or 0.33 per cent, while state-owned banks dropped significantly by Tk115.41 billion or 2.59 per cent. Specialized and foreign banks also continued to experience declines of Tk2.18 billion and Tk19.45 billion respectively during the review period.
When examining account types, fixed deposits gained popularity, increasing their share from 44.73 per cent to 46.49 per cent of total deposits. Fixed deposits grew by Tk 260.9 billion or 3.17 per cent, indicating a trend towards more secure savings, despite previous quarters showing higher growth percentages.
Sector-wise instabilities were more pronounced. Private sector deposits decreased by Tk 34.59 billion or 0.23 per cent while public sector deposits saw a more significant decline of Tk 100.4 billion or 3.13 per cent. Government deposits shrank by Tk 41.87 billion or 4 per cent.
