People no longer keep money in banks solely for high interest rates. They prefer banks where default loans are low, the financial base is strong, confidence is high, and fund management is relatively stable. This changing outlook is increasingly reflected in deposit patterns.
Analysts say this shift also serves as a warning for the banking sector. Banks that have not yet brought default loans under control or failed to ensure good governance risk losing deposits. People trust banks that operate in a disciplined manner.
The country's banking sector has faced various crises for a long time. The pressure of default loans, lack of good governance, and declining trust are influencing depositors' decisions in choosing banks.
The lure of high interest no longer prompts depositors to place money indiscriminately. Instead, customers now prefer banks with lower default loans and a stronger financial base. This trend is evident when analyzing recent deposit growth.
During the previous Awami League government there were widespread irregularities and looting in the banking sector. After the political change over in 2025, the erosion of those irregularities and the crisis came to the fore.
According to latest Bangladesh Bank calculations total loan disbursed in the banking sector at the end of September last year stood at around Tk 18,03,840 crore. Of this, Tk 6,44,515 crore has become default loan which is 36 per cent of the total loan.
However, picture in all banks is not the same. Default loan at several banks is comparatively low. The list includes Citizens Bank, Eastern Bank, Bengal Commercial Bank, BRAC Bank, Prime Bank, City Bank, Midland Bank, Pubali Bank, Jamuna Bank and Mutual Trust Bank.
Their default loan generally limited to 1 to 7 per cent, which highlights their better risk management capabilities. City Bank top the list of deposit growth from January to September 2025.
During this period, its deposits increased by 23.4 per cent, which is Tk 12,020 crore in terms of deposit. Its default loan is only 4.76 per cent.
BRAC Bank, which is second in low default loans in which deposit growth is 20.68 per cent or Tk 16,000 crore.
The bank is known as a relatively safe bank for disciplined loan distribution in the SME sector, strong capital base and expansion of digital services. Its default loan is only 3.58 per cent.
When contacted, a senior official of BRAC Bank said, the bank is safest in term of depositors money. In addition, good governance, transparency and strict regulatory compliance in bank operations are at work.
He said we maintain appropriate risk management standards and adhere to the highest level of caution to protect customer deposits. In addition, we are one of the banks with the lowest default loans due to lending in accordance with appropriate rules.
Similarly, Purbali Bank has seen 14.72 per cent deposit growth in the first nine months of 2025 standing 5th in deposit growth. Its defaulted loan rate was 5.5 per cent. Eastern Bank which ranks 7th with a 13.68 per cent deposit growth, has a default loan of only 3.09 per cent.
In May 2024, Bangladesh Bank (BB) completely left the interest rate to the market mechanism. After this, along with the increase in loan interest rates, deposit interest rates also increased. According to BB data, the average interest rate on deposits of these four banks was between 5 and 7 per cent in different months of last year.
Bangladesh Bank Executive Director Spokesperson Arif Hossain Khan said, trust in the country's banking sector has changed. People are now considering the overall financial capacity of the bank to operate deposits.
The good news is that the banking sector is moving away from risky loan distribution to discipline loan and its transparency. Bangladesh Bank is taking all necessary steps to control default loans, strengthen liquidity management and protect the interests of depositors through regular supervision.
