Exports thru Islamic banks decreased by Tk 7,741 crore

In the third quarter of this year, traders exported less through the country's Islamic banks, resulting in a decrease in the export income of Islamic banks. According to a recent updated report from Bangladesh Bank, Islamic banks exported less than Tk 7,741 crore in the three months from July to September. This figure is 20.60 percent less than the previous quarter.

The data reveals that in the second quarter of this year, the total exports of Islamic banks amounted to Tk 37,575 crore, decreasing to Tk 29,835 crore in the third quarter. However, compared to the same period in 2022, exports have decreased by 33.66 percent, totalling Tk 15,135 crore compared to the previous year.

In addition to exports, import trade has also decreased in these banks. In the third quarter, imports decreased to Tk 392 crore, which is 17.64 percent less than the previous quarter. During the discussed period, the total amount for imports stood at Tk 39,193 crore. Compared to the same quarter of the previous year, imports of goods were less than Tk 26,670 crore.

Although import-export trade has decreased, there has been an increase in deposits and loans in Islamic banks in the third quarter. At the end of September, deposits in the banking system of this sector stood at Tk 4 lakh 31,989 crore, which is Tk 3,989 crore more than the previous quarter (April to June). Deposits increased by Tk 10,614 crore compared to the third quarter of 2022.

Among them, the total deposits of 10 Islamic banks stand at Tk 3 lakh 95,142 crore. Islamic banking branch deposits of conventional banks stood at 17,464, and Islamic banking window deposits stood at Tk 19,383 crore. Islami Bank is leading in the deposit acceptance rate, collecting 34.54 percent of total deposits. Next in position were Exim Bank, First Security Islami Bank, and Al-Arafa Islami Bank.

Loan disbursement also increased by Tk 7,595 crore. At the end of September, the lending of this category of banks increased to Tk 4 lakh 29,071 crore. Loan disbursement has increased by Tk 37,769 crore compared to the same quarter of the previous year. Islamic banks provide 28 percent of the total loans and investments in the banking sector, resulting in a deposit and investment ratio of 91 percent. Of this, Islamic banks have invested Tk 4 lakh 22,700 crore, and Tk 26,802 crore has been invested through Islamic branches and windows of other banks.

However, in the third quarter, the excess liquidity of Islamic banks decreased to Tk 7,767 crore, down from Tk 8,690 crore in the previous quarter. In just three months, the excess liquidity of banks has decreased by Tk 923 crore, and it decreased by Tk 9,758 crore compared to the previous year. However, the most expatriate income came through the banks of this sector, with remittances increasing by Tk 28,047 crore in the three months from July to September, up from Tk 22,192 crore in the previous quarter.

Meanwhile, in three months, only 7 branches of traditional banks, including Islamic banking, have increased. It increased from 1,694 branches in the previous quarter to 1,701 at the end of September. 73 branches have increased in one year. A total of 50,146 officers and employees are employed in these branches, increasing by only 127 people compared to the previous quarter.

According to the latest information, there are 1,671 branches of 10 Islamic banks in the country so far. Besides, 15 banks have 30 Islamic banking branches of conventional banks. Besides, 16 public-private banks have 615 Islamic windows.

According to the information given in the report, the deposits of the traditional banking sector of the country stood at Tk 16 lakh 23,139 crore at the end of September. The investment of these banks is Tk 15 lakh 32,518 crore.

Tk 53,640 crore of remittances have come to banks outside of Islamic channels. Banks have excess liquidity of Tk 1 lakh 74,452 crore. Traditional banks have a total of 11,219 branches across the country.