Bangladesh’s Islamic banking sector appears to be writing a new success story in September 2025. According to the latest data from Bangladesh Bank, deposits, investments, total assets, and remittances all saw significant growth over the year, even as export earnings experienced a notable decline. The figures suggest that Islamic banks are consolidating their position as trusted financial institutions.
Deposits in Islamic banks rose from Tk 4.34 trillion in September 2024 to Tk 4.67 trillion in September 2025, representing a 7.52 per cent increase. Investments grew even faster, climbing from Tk 5.17 trillion to Tk 5.73 trillion, or 10.86 per cent. These numbers reflect growing confidence among both corporate and retail customers.
Key Performance Indicators
| Indicator | September 2024 | September 2025 | Growth |
|---|---|---|---|
| Total Deposits | Tk 4.34 trillion | Tk 4.67 trillion | 7.52% |
| Total Investments | Tk 5.17 trillion | Tk 5.73 trillion | 10.86% |
| Total Assets | Tk 8.50 trillion | Tk 9.54 trillion | 12.26% |
| Agent Banking Deposits | Tk 209 billion | Tk 264 billion | 26.35% |
The broader banking sector also reported healthy growth. Total deposits increased from Tk 18.58 trillion to Tk 20.63 trillion, an 11.02 per cent rise, while total investments jumped from Tk 20.84 trillion to Tk 23.28 trillion, marking 11.72 per cent year-on-year growth.
Islamic banks’ total assets grew from Tk 8.50 trillion to Tk 9.54 trillion, indicating a 12.26 per cent increase. However, the sector did see a decline in export proceeds, falling from $837 million in September 2024 to $703 million in September 2025, a drop of 16 per cent. Import payments also decreased slightly, from $1.07 billion to $1.01 billion (5.23 per cent).
The standout performer was remittances. Islamic banks’ market share increased from 22.45 per cent to 30.44 per cent, while the total inflow of remittances rose from $540 million to $818 million over the year. Agent banking deposits also strengthened, rising from Tk 209 billion to Tk 264 billion, an impressive 26.35 per cent growth.
Experts attribute this expansion to the increasing popularity of Shariah-compliant banking, particularly among migrant workers and rural populations. The decline in export proceeds, they note, signals structural weaknesses in the external sector influenced by global demand shifts and domestic shipment delays.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh (PEB), said, “The Islamic banking sector’s steady growth shows its growing importance in the financial landscape. Customers, especially migrants and rural households, are increasingly confident in Shariah-compliant channels.”
He also cautioned that the sharp drop in export earnings points to structural challenges. “Islamic banks must diversify their products, strengthen trade finance operations, and adhere to strict compliance standards to capture a larger share of export proceeds,” Dr Reaz stated.
He added that sustained growth would rely on governance improvements, tighter oversight, and technology-driven service expansion. “Islamic banks are well-positioned to play a bigger role, but efficiency, transparency, and innovation will be key to remaining competitive in a changing financial environment,” he concluded.