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Deposits and profits of foreign commercial banks operating in Bangladesh declined over the past year, with their combined deposits falling by Tk 111 crore and profits dropping by nearly Tk 494 crore, or around 17.5 per cent.
The figures cover nine foreign commercial banks operating 67 branches and six sub-branches across the country.
The information was disclosed in a Bangladesh Bank report titled “Foreign Banks’ Operations in Bangladesh: Trends and Operational Analysis”, published on Wednesday.
According to the report, total deposits held by foreign banks fell to Tk 87,379 crore in January-June this year from Tk 87,490 crore in the same period last year.
Their combined profits also declined to Tk 2,322 crore at the end of June this year from Tk 2,816 crore a year earlier, representing a fall of Tk 494 crore.
The report, however, did not explain the reasons behind the declines in deposits and profits.
The nine banks are The Hongkong and Shanghai Banking Corporation (HSBC), Standard Chartered Bangladesh, Citibank N.A., Commercial Bank of Ceylon, Woori Bank, State Bank of India, Habib Bank, National Bank of Pakistan and Bank Alfalah.
A significant portion of their deposits consists of low-interest current and savings accounts. Such accounts held Tk 32,801 crore at the end of June, according to the report.
Foreign-currency accounts accounted for the second-largest share of deposits, totalling Tk 17,088 crore. Fixed and term deposits amounted to Tk 12,665 crore.
Although foreign banks hold a substantial amount of low-cost deposits, they remain relatively cautious in lending.
Their combined outstanding loans stood at Tk 48,704 crore at the end of June this year, up from Tk 48,355 crore a year earlier. This represents an annual increase of Tk 349 crore.
The industrial sector received the largest share of loans from foreign banks, with outstanding lending to the sector reaching Tk 25,403 crore at the end of June.
Transport and construction received the smallest share of their lending. Loans to the transport sector stood at just Tk 10 crore at the end of June, the report said.