Dhaka, June 14 -- Islamic banking in Bangladesh has seen a further decline in its share of total deposits, as a crisis of confidence following widespread lending irregularities continues to weigh heavily on the sector. At the end of the first quarter of 2025, Islamic banks held deposits of just over Tk 376,163 crore.

In contrast, total deposits across all scheduled banks increased by 2.11 percent during the quarter, reaching approximately Tk 1,923,504 crore by the end of March, according to data from Bangladesh Bank.

Deposits in Shariah-based banks accounted for 19.56 percent of the total in the January-March quarter, down from 20.14 percent in the previous October-December quarter and 20.91 percent in July-September 2024, reflecting a ...