Bank accounts with above Tk1cr rise by 3,426 in Dec quarter

The number of bank accounts with above Tk1 crore in deposits in the country increased by 3,426 to 1.09 lakh in the October-December quarter of 2022 compared to that of the previous quarter, according to the latest Bangladesh Bank report.

Bankers said such an increase in rich accounts – belonging to both individuals and institutions – came thanks to higher profits in businesses amid price hikes. The number of individuals having at least Tk1 crore, which the central bank does not publish, is much higher, they believe.

The rich accounts, which have been on the rise since the outbreak of Covid-19 in the country in early 2020, witnessed a fall of 2,000 in number in the September quarter of the last year and stood at 1.06 lakh, according to the report titled "Scheduled Banks Statistics".

"Although overall bank deposits have been on the decline amid inflationary pressure, the number of accounts having over Tk1cr has been on the rise, triggering inequality in society," Mohammad Ali, managing director and chief executive officer of Pubali Bank, told The Business Standard.

"Global goods prices started to surge last April and the local market followed suit. Many of our traders had good stocks purchased at previous lower prices and they bagged higher profits capitalising on price gaps. Besides, exporters also received higher amounts from their proceeds due to sudden dollar price hikes. These are the factors behind the increase in rich accounts."

According to the central bank, deposits in banks stood at Tk15.88 lakh crore at the end of December 2022, while the number of accounts increased to 13.62 lakh. Of the deposits, 42.63% belong to accounts having Tk1 crore or above.

Talking to The Business Standard, senior officials from several state-run and private banks said individuals account for 5-7% of the bank accounts with above core taka and the remaining accounts belong to public, private and foreign institutions, including corporate organisations, voluntary and social organisations.

"The number of individuals having more than Tk1 crore is much higher in the country but that is not visible in statistics as they keep their money in multiple accounts," a senior Bangladesh Bank official told TBS.

434 accounts in NBFIs

Non-bank financial Institutions, also known as NBFIs, also witnessed an increase of 434 accounts having higher than Tk1 core in the December quarter, which raised the total number of such accounts to 5,326, according to the Bangladesh Bank data.

At the end of September, the number of the accounts was 4,892.

At the same time, the amount of money deposited in these accounts also increased by Tk1,337 crore to Tk24,837 crore during the three months. At the end of December, total deposits in 5.22 lakh NBFI accounts amounted to Tk43,753 crore, while 57% of the deposits were in accounts having at least Tk1 crore.

"Institutional accounts are the majority in accounts having more than a crore taka. There are also some personal accounts. Overall, our deposits have increased slightly," Md Kyser Hamid, managing director and CEO of Bangladesh Finance, told TBS.

Another NBFI managing director, who asked to be unnamed, added that the accounts of People's Leasing, which was in bad condition due to various irregularities, had not been added to statistics in the previous several quarters. "Its Tk2,000 was added in the December quarter, which is why the growth of deposits came. Basically, deposits have not increased, except for a few financial institutions," he added.