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Deposits in Islamic banks – which have been increasing steadily – reached Tk 3,99,679 crore at the end of March this year, which accounted for 28.21 per cent of total deposits in Bangladesh’s entire banking sector.
Islamic banks’ deposits, recorded at the end of March 2022, are an increase of 1.67 per cent or Tk 6,568 crore when compared to that of December 2021. It is also an increase of Tk 41,887 crore or 11.71 per cent when compared to the same quarter last FY.
The Bangladesh Bank’s quarterly report, titled “Developments of Islamic Banking in Bangladesh-(January-March 2022)” further added that in line with global trends, this sector has also been witnessing robust growth due to the central bank’s policy support and strong public demand.
Published on Sunday, the report mentions that the sector is growing globally based on its risk sharing, optimism, inclusiveness and real asset backed transaction features.
The amount of investment has increased along with the deposits. Total Investment (loans & advances) of Islamic banking sector stood at Tk 3,60,649 crore at the end of March 2022.
Investments went up by Tk 7,201 crore or 2.04 per cent when compared to that of December 2021, and by Tk 38,251 crore or 11.86 per cent when compared to the same quarter last FY.
Islamic banks’ total investments accounted for 27.78 per cent of total loans & advances of the country’s entire banking sector.
The demand for Islamic banking increased the tendency to open new branches and windows.
The number of Islamic banking branches, including Islamic branches/windows of conventional commercial banks, stood at 2,154 at the end of March 2022, which was 2,080 at the end December 2021 and 1,755 at the end March of last year.
The central bank report mentioned that the Islamic Banking sector made significant contributions towards the growth and economic development of Bangladesh.
This sector seems progressively attractive and profitable to conventional banks for their lower Statutory Liquidity Ratio (SLR) and higher Loan-Deposit Ratio (LDR), it added. At present, 10 full-fledged Islamic banks are operating with 1,679 branches, out of 10,942 branches in this sector.
In addition, 41 Islamic banking branches of 9 conventional commercial banks, and 434 Islamic banking windows of 13 conventional commercial banks are also providing Islamic financial services in Bangladesh.
