The revelation of the banking industry’s flaws following the August 5 government shift sent depositors into a panic. Uncertainty returned once the merger ordinance was issued, despite the central bank’s prompt action of offering liquidity support. Consequently, deposit growth in the banking sector has dropped below 9 percent.

As per the most recent information from Bangladesh Bank, the total deposits within the nation’s banking sector reached Tk 20,18,196 crore by the end of May 2025, reflecting an increase of 8.74 percent compared to the same timeframe last year. Nevertheless, the growth rate recorded in March was 9.51 percent, and it has been on a downward trend since then. While the number of banks with decreased deposits was 11 in March, this figure rose to 16 by May.

The ongoing talks regarding the merger of Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank, coupled with reports of their financial difficulties, have negatively impacted customer trust. Consequently, a decline in deposits has been observed not only in these banks but also in various others.

Typically, cash usage surges around Eid al-Adha. However, this year has set new records. On June 5, the cash in circulation reached Tk 3,39,179 crore, marking the highest level in the nation’s history. This figure was Tk 3,17,986 crore at the end of May and Tk 3,25,583 crore during Eid last year.

At the end of May, the total amount of loans in the banking industry was Tk 1,719,572 crore, up 7.31 percent from the previous year, according to Bangladesh Bank. The loan-deposit ratio (ADR) in this case was found to be 81.02 percent. This ratio has, however, exceeded the set threshold for a number of troubled banks.

Basic Bank, Social Islami Bank, Exim Bank, ICB Islamic Bank, National Bank, First Security Islami Bank, Global Islami Bank, Bangladesh Commerce Bank, Madhumoti Bank, Union Bank, and Community Bank are the banks that have had the most drop in deposits. There has also been a drop in deposits at foreign-owned banks such as Alfalah, State Bank of India, Uri, Habib, and Standard Chartered Bank. However, the primary focus of these international banks is on commission-based and LC business, and because of the low interest rates, deposits also tend to be quite modest.