Key Takeaways
- • Eight Bangladeshi private banks now hold deposits above BDT 500 billion each, and six of them carry the highest 'AAA' credit rating while two carry 'AA', according to Daily Bonik Barta.
- • BRAC Bank reported deposits above BDT 1.14 trillion at the end of September, with total assets and liabilities of BDT 1.52 trillion and an NPL ratio kept below 2 percent, against a sector average of around 33 percent.
- • Pubali Bank, recently moved from public to private ownership, reports deposits above BDT 1.08 trillion and holds a 'AAA' rating from CRISL.
- • Bank executives say depositors are now weighing credit ratings, governance and transparency, a shift they attribute to bank failures following the 2024 uprising.
- • Banks that lent amid irregularities and weak governance are facing the most severe difficulties, while compliant, risk-cautious lenders have attracted deposits.
Summary
Despite economic strain and instability in Bangladesh's banking sector, eight private commercial banks have deposits exceeding BDT 500 billion and hold top credit ratings, according to Daily Bonik Barta. Six banks hold 'AAA' ratings: BRAC Bank, City Bank, Pubali Bank, Dutch-Bangla Bank, Eastern Bank and Prime Bank. Trust Bank and Bank Asia hold 'AA' ratings. The list includes both first-generation banks and lenders that began operations in the early 21st century.
According to the report, credit ratings were traditionally given little weight by Bangladeshi depositors, who placed savings without assessing financial strength or governance. Bank executives say the collapse of several banks after the 2024 mass uprising has changed that. Credit ratings, corporate governance, management transparency and reputation are now becoming key considerations. Executives also said banks that disbursed loans amid irregularities and weak governance now face the most severe difficulties, while those that complied with regulations and managed risk carefully have attracted deposits.
BRAC Bank reported total assets and liabilities of BDT 1.52 trillion at the end of September. Its deposits rose by BDT 153.11 billion in the first nine months of the year, and outstanding loans stood at BDT 779.88 billion. The bank kept its NPL ratio below 2 percent, while the sector-wide average is around 33 percent. It holds 'AAA' long-term and 'ST-1' short-term ratings from the Credit Rating Agency of Bangladesh (CRAB). Managing Director Tareq Refat Ullah Khan attributed the growth to brand value, reputation and trust built over two and a half decades.
CRAB also rated City Bank, Dutch-Bangla Bank, Eastern Bank and Prime Bank 'AAA' and 'ST-1', and Trust Bank 'AA1'. At the end of September, City Bank deposits were BDT 774.04 billion, Dutch-Bangla BDT 732.82 billion, Eastern Bank BDT 630.30 billion and Trust Bank BDT 581 billion. Trust Bank, established by the Army Welfare Trust, said its deposits rose by nearly BDT 70 billion in the first nine months. Its managing director, Ahsan Zaman Chowdhury, said customers have begun checking ratings after losses at some banks.
Prime Bank reached the BDT 500 billion deposit mark in October, up from BDT 443.43 billion at the end of last December. Additional Managing Director M Nazeem A Choudhury said the bank prioritises governance and sustainable growth. Pubali Bank, rated 'AAA' by the Credit Rating Information and Services Limited (CRISL), has deposits above BDT 1.08 trillion, up from BDT 894.84 billion at the end of last December, an increase of more than BDT 190 billion in nine months. The bank was transferred from public to private ownership. Bank Asia, rated 'AA+' by CRISL, reported deposits of BDT 533.07 billion at the end of September.
According to the report, credit ratings were traditionally given little weight by Bangladeshi depositors, who placed savings without assessing financial strength or governance. Bank executives say the collapse of several banks after the 2024 mass uprising has changed that. Credit ratings, corporate governance, management transparency and reputation are now becoming key considerations. Executives also said banks that disbursed loans amid irregularities and weak governance now face the most severe difficulties, while those that complied with regulations and managed risk carefully have attracted deposits.
BRAC Bank reported total assets and liabilities of BDT 1.52 trillion at the end of September. Its deposits rose by BDT 153.11 billion in the first nine months of the year, and outstanding loans stood at BDT 779.88 billion. The bank kept its NPL ratio below 2 percent, while the sector-wide average is around 33 percent. It holds 'AAA' long-term and 'ST-1' short-term ratings from the Credit Rating Agency of Bangladesh (CRAB). Managing Director Tareq Refat Ullah Khan attributed the growth to brand value, reputation and trust built over two and a half decades.
CRAB also rated City Bank, Dutch-Bangla Bank, Eastern Bank and Prime Bank 'AAA' and 'ST-1', and Trust Bank 'AA1'. At the end of September, City Bank deposits were BDT 774.04 billion, Dutch-Bangla BDT 732.82 billion, Eastern Bank BDT 630.30 billion and Trust Bank BDT 581 billion. Trust Bank, established by the Army Welfare Trust, said its deposits rose by nearly BDT 70 billion in the first nine months. Its managing director, Ahsan Zaman Chowdhury, said customers have begun checking ratings after losses at some banks.
Prime Bank reached the BDT 500 billion deposit mark in October, up from BDT 443.43 billion at the end of last December. Additional Managing Director M Nazeem A Choudhury said the bank prioritises governance and sustainable growth. Pubali Bank, rated 'AAA' by the Credit Rating Information and Services Limited (CRISL), has deposits above BDT 1.08 trillion, up from BDT 894.84 billion at the end of last December, an increase of more than BDT 190 billion in nine months. The bank was transferred from public to private ownership. Bank Asia, rated 'AA+' by CRISL, reported deposits of BDT 533.07 billion at the end of September.
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