Bank loans through agent banking amount to 15.63% of deposits in the end of June quarter
An archive photo shows the headquarters of the Bank of Bangladesh in Motijheel in the capital. Banks’ loan disbursements through their bank branches accounted for 15.63% of the deposits they collected through the channel during the April to June 2021 quarter, as only 10 banks disbursed loans through the channel. channel. – Photo New Age
Banks’ loan disbursements through their bank branches accounted for 15.63% of the deposits they collected through the channel during the April to June 2021 quarter, as only 10 banks disbursed loans through the channel. channel.
Although loans against deposits improved by 1.6 percentage points in the period from 14.03% three months ago, banks mainly use the field of banking operations as a source of deposit mobilization , according to a Bangladesh Bank Quarterly Agent Banking Report.
So far, banks have raised Tk 20,379.28 crore in deposits through their agent banking services against disbursement of only Tk 3,186.29 crore through the channel.
The increase in the ratio of investment to deposits indicates that investment through agent outlets has gradually gained momentum, according to the BB report.
However, in the April-June quarter, only nine of 28 banks distributed loans through bank agents, he said.
The low amount of loans indicates that the agents ‘bank teller serves the banks’ purpose of collecting deposits more than lending, he said, adding that the BB was closely monitoring progress and emphasizing disbursement of loans to rural populations to stimulate the rural economy.
If we consider the geographic concentration of deposits and loans, we find that rural populations do not receive their fair share of loans from banks.
Banks disbursed 63.8 percent of their loans through agent banking wings in rural areas against collecting 76.1 percent of agent bank deposits in the zones.
Islami Bank Bangladesh Limited collected the highest deposits worth Tk 6,861.12 crore, representing 33.67 percent of the total deposits raised by all banks through the agent banking wing.
Despite being the leading bank in mobilizing deposits, IBBL has so far only disbursed Tk 7.81 crore through its agent banking wing.
BRAC Bank has already disbursed Tk 1,998.58 crore through its banking wing, which represents 62.72 percent of banks lending through the channel.
Bank Asia, the first bank to receive regulatory approval to operate agent-based banking after the service launched in 2013, has so far disbursed Tk 624.67 crore through its agent banking wing against collection of deposits valued at Tk 3,078.28 crore through the channel.
In addition to the three banks, seven other banks – The City Bank, Al-Arafah Islami Bank, Dutch-Bangla Bank, Mutual Trust Bank, NRB Bank, Modhumoti Bank and Jamuna Bank – have so far disbursed loans through their bank branches.
Eighteen other banks that have been licensed to operate bank agents have yet to disburse loans through their agent bank wings.
The banks are NRB Commercial Bank, Social Islami Bank, Standard Bank, First Security Islami Bank, Agrani Bank, Midland Bank, United Commercial Bank, AB Bank, The Premier Bank, Eastern Bank, One Bank, Mercantile Bank, Shahjalal Islami Bank, Exim Bank, Padma Bank, Prime Bank, Global Islami Bank and Meghna Bank.
The number of customer accounts opened through agent banking wings reached 1.22 crore at the end of June 2021, up from 1.10 crore three months ago.
The number of bank agents and outlets rose to 12,912 and 17,145 respectively at the end of June 2021.