Islamic banks in Bangladesh sustained steady performance in key areas between February 2024 and February 2025, despite facing intensified competition from conventional banks, according to a Bangladesh Bank report.

Deposits in Islamic banks grew by 4.0% year-on-year, rising from Tk 4.19 trillion to Tk 4.36 trillion. This occurred in the backdrop of a broader 8.17% increase in total banking deposits, which reached Tk 19.19 trillion by February 2025.

The report noted Islamic banks’ consistent appeal due to Shariah-compliant services, even as conventional banks recorded faster growth.

Islamic banks’ investments increased by 8.02% to Tk 5.28 trillion, reflecting cautious expansion. Their asset base also grew 10.11% to Tk 8.53 trillion, showing disciplined accumulation amid volatile conditions.

Export performance remained a bright spot, with Islamic banks posting nearly 14% year-on-year growth in export receipts—up from $628 million to $713 million. Import payments also surged by 22.18%, reaching $1.10 billion, representing 20% of the national total.

However, remittance inflows into Islamic banks dropped sharply—falling from $897 million in February 2024 to $502 million a year later—reducing their share from 41% to below 20%. The central bank attributed this decline to possible trust and governance issues.

In agent banking, Islamic banks retained dominance, holding 55.23% of deposits and increasing this segment by 5% to Tk 211 billion.