Bangladesh’s non-bank financial institution (NBFI) sector is showing early signs of recovery after years of challenges caused by irregularities, corruption, and weak governance, with deposits and the number of depositors increasing significantly in the first quarter of 2026.

According to the latest Bangladesh Bank data, total deposits in the NBFI sector reached Tk 515.59 billion at the end of March 2026, up from Tk 511.27 billion at the end of December 2025. The increase of Tk 4.31 billion represents a quarterly growth of 0.84 percent.

The data also indicate a steady upward trend in deposits over the past year. Total deposits stood at Tk 494.88 billion in March 2025, rising to Tk 497.74 billion in June, Tk 507.23 billion in September, and Tk 511.27 billion by December.

The number of depositors also recorded strong growth. As of March 2026, the sector had 622,726 depositors, compared with 571,382 three months earlier. This means 51,344 new depositors joined during the quarter, reflecting a growth rate of 8.99 percent.

Historical data show a consistent rise in depositor numbers throughout 2025. The figure increased from 440,907 in March to 480,163 in June, 540,825 in September, and 571,382 by the end of December.

While deposits increased, lending activity remained relatively cautious. Total outstanding loans in the NBFI sector stood at Tk 784.25 billion at the end of March 2026, down from Tk 788.29 billion three months earlier. The decline of Tk 4.04 billion, or 0.51 percent, suggests financial institutions have adopted a more conservative lending approach.

Commenting on the sector’s performance, Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said the recent growth in deposits sends a positive signal, reflecting the initial restoration of customer confidence. However, he emphasized that existing risks must continue to be addressed through stronger transparency, improved risk management, and effective supervision.

M Helal Ahmed Jony, Research Fellow at policy research organization Change Initiative, said the rise in deposits and depositor numbers is an encouraging indication that public confidence is gradually returning to the sector.

He noted that the slight decline in lending should not necessarily be viewed negatively, arguing that prudent lending practices could help improve asset quality in the long run.

Analysts say sustaining the recovery will require stronger corporate governance, improved regulatory oversight, greater transparency, and effective measures to address non-performing loans and other structural weaknesses. If these reforms are successfully implemented, the NBFI sector could re-emerge as a significant alternative source of financing and investment in Bangladesh.