The Bangladesh Bank (BB) has reported record net profits of approximately Tk 230 billion in FY25, a 52% increase from the previous year, driven largely by higher policy rates and banks’ growing reliance on its liquidity facilities.

The central bank’s financial statement was approved at its 443rd board meeting on Tuesday, chaired by Governor Dr Ahsan H Mansur. Data shows BB’s net profits surged from Tk 151 billion in FY24 and Tk 107.5 billion in FY23.

Officials said the bulk of earnings came from repo and special repo operations, as scheduled banks turned heavily to the central bank for short-term funds amid sluggish economic activity.

Borrowings through these windows hit Tk 1.77 trillion in March, rising to Tk 2.49 trillion in May before easing slightly to Tk 2.26 trillion in June.

A senior BB official, requesting anonymity, said the phased hike in the policy rate, from 8% to 10%, to curb inflation after last year’s political upheaval, significantly boosted profits. Another official noted banks’ continued dependency on central bank liquidity as a key driver.

Economist Dr. M. Masrur Reaz said that central banks making profits was not unusual globally, but suggested that BB consider ways to lower service and liquidity costs. “That would help reduce the cost of business for banks and their clients amid persistent inflation,” he said.