Dhaka, July 19 -- Deposit growth in Bangladesh's banking sector fell to its lowest level in May, despite banks offering attractive interest rates and a recent decline in inflation.

According to the latest data from Bangladesh Bank, total deposits in the banking system reached Tk18.32 lakh crore at the end of May, marking a 7.73 percent year-on-year increase from Tk17 lakh crore in May 2024. This growth, however, represents a continued slowdown from 8.21 percent in April and 8.51 percent in March.

Currently, banks are offering deposit interest rates ranging between 9 and 11 percent, with some liquidity-strapped institutions offering up to 13 percent. However, these higher rates have failed to attract deposits at the expected level.

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