Islamic banks’ loan surges despite deposit drops

Depositors are losing confidence in the country's banking sector due to various irregularities and corruption. As a result, depositors' confidence in Islamic banks is also decreasing.

Loan disbursements from the bank has significantly increased despite a sharp decline in deposit collection.

According to a quarterly report of the central bank in 2024, deposits in the Shariah-based banks of the country were Tk4,03,850 crore at the end of last December. That has decreased to Tk3,99,549 crore in the March quarter. Deposits decreased by Tk 4,300 crore in the first quarter of the year.

Besides, the amount of loan or investment of the Islami banks in the country was Tk4,44,974 crore at the end of last December. That reached at Tk4,56,994 crore in March quarter.

Banks' liquidity decreased by more than 77 percent during the period.

There are currently 10 full-fledged Shariah-based banks in the country. They are – Islami Bank Bangladesh, Al-Arafah Islami Bank, Exim Bank, Shahjalal Islami Bank, First Security Islami Bank, Social Islami Bank Limited (SIBL), Global Bank, Union Bank, ICB Islamic Bank and Standard Bank.

According to the report of Bangladesh Bank, the total amount of deposits in Islamic style banking in the bank sector was Tk 4,39,456 crore at the end of last March quarter. In the previous quarter, the deposits at the end of December were Tk 4,43403 crore. The deposits in Islamic banking sector decreased by Tk3,938 crore during the quarter.