B Mirror Report: Bangladesh Bank earned more than Tk 12,000 crore in interest income from investments of foreign exchange reserves in the 2025-26 fiscal year, marking a sharp increase from the previous two fiscal years.
According to the central bank’s financial statements, total interest income from various foreign-currency financial assets stood at Tk 12,064 crore during the fiscal year.
Of the amount, Tk 5,611 crore came from foreign bonds and US Treasury notes. The central bank earned another Tk 2,856 crore in interest from loans provided to foreign banks and Tk 2,725 crore from short-term deposits held with various banks. Income from other foreign assets amounted to around Tk 871 crore.
The income from foreign-currency financial assets was Tk 7,703 crore in FY2024-25, of which around Tk 7,674 crore was interest income. Thus, income from the reserve investments increased by Tk 4,390 crore, or 57.21%, year-on-year in FY2025-26.
In FY2023-24, income from the same sector stood at Tk 6,556 crore. Compared with that year, income in FY2025-26 increased by Tk 5,508 crore, or 84.01%.
The increase was largely attributed to higher global coupon and interest rates, which improved returns on the central bank’s investments in government bonds, securities and deposits.
Bangladesh currently has around $36.38 billion in total foreign exchange reserves, while gross reserves stand at approximately $31.47 billion.
Apart from reserve investments, Bangladesh Bank earns income by providing liquidity support to the government and commercial banks.
The central bank earned Tk 22,667 crore from domestic sources in FY2025-26, although the amount was lower than the Tk 24,751 crore earned in FY2024-25.
The largest portion of domestic income came from interest on loans provided to banks. Bangladesh Bank earned Tk 21,570 crore from lending to banks. It also earned Tk 431 crore in commissions and discounts, received Tk 200 crore in dividends and earned another Tk 475 crore from other sources.
Central bank officials said the policy rate remained at 10% throughout FY2025-26 as part of efforts to contain inflation. As a result, banks had to borrow from Bangladesh Bank at relatively high interest rates, increasing the central bank’s interest income.
Bangladesh Bank’s total operating income, or gross profit, reached Tk 35,016 crore in FY2025-26.
After deducting expenses, the central bank recorded net profit of Tk 26,023 crore. After providing six bonuses to its officials, it deposited Tk 25,977 crore with the government treasury.
Of the amount transferred to the government, Tk 10,000 crore was deposited during the middle of the fiscal year, while the remaining Tk 15,977 crore was deposited recently.
The central bank spent a total of Tk 8,993 crore on operational and other expenses during the fiscal year.
In FY2024-25, Bangladesh Bank’s net profit was Tk 22,620 crore, against gross profit of Tk 34,962 crore.
In FY2023-24, the central bank recorded gross profit of Tk 40,566 crore, while net profit stood at Tk 15,391 crore.
Economists, however, say profit-making is not the primary objective of a central bank. Its key responsibilities include supervising the banking sector, controlling inflation, supporting private-sector investment and creating an environment conducive to employment generation.
They said the rise in Bangladesh Bank’s profits was partly driven by the difficulties in the economy and banking sector, including persistent liquidity shortages and high interest rates.
They cautioned that the central bank should ensure that its pursuit of income does not come at the expense of its core monetary and regulatory responsibilities.
The central bank’s lending operations remained active despite the economic slowdown, with liquidity shortages prompting banks to borrow more from Bangladesh Bank than in previous periods. This increased interest income from domestic lending, while higher returns from overseas reserve investments also contributed to the rise in overall profit.
