Bangladesh’s conventional banks have outperformed Islamic banks across key financial indicators from January 2024 to January 2025, according to the latest report from Bangladesh Bank.

Total deposits in the banking sector rose by 8.40% to Tk 19.05 trillion. Conventional banks led this growth, posting a 9.56% increase to Tk 14.72 trillion. Islamic banks lagged behind with a modest 4.64% growth, reaching Tk 4.33 trillion. Consequently, Islamic banks’ share in total deposits fell to 22.74%, down from 23.56%, partly due to public mistrust following a sector-wide crisis in July 2024.

Investments across the sector grew by 11.76%. Conventional banks saw a 12.64% rise to Tk 16.37 trillion, while Islamic banks registered a 9.12% increase to Tk 5.26 trillion. Conventional institutions now manage nearly 75% of total investments.

Asset growth reflected a similar pattern, with conventional banks expanding assets by 15.67% to Tk 30.96 trillion, compared to an 11.59% rise for Islamic banks, whose assets stood at Tk 8.46 trillion.

Export earnings through banks rose overall. Islamic banks facilitated over $3.18 billion in exports, a 16% rise year-on-year. However, conventional banks handled nearly 80% of export transactions, posting a 17% increase.

Islamic banks recorded a 16.68% rise in import payments, but conventional banks faced volatility due to a persistent dollar shortage.

The report noted that despite trailing in most areas, Islamic banks led in collecting deposits through agent banking services during the year.