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The Bangladesh Bank (BB) made a record by bagging net profits of around Tk 230 billion in FY25 - a 52 per cent increase from the previous fiscal year.
The frequent rise in the policy rate and commercial banks' growing dependence on the central bank's liquidity-feeding instruments helped the regulator enjoy an increase of around Tk 80 billion in net profits in a single financial year, according to central bankers and money market analysts.
The central bank's incomes and expenses were shared at its 443rd board meeting held on Tuesday, with Governor Dr Ahsan H Mansur in the chair.
Its board of directors approved the FY25 financial statement in the meeting.
Data shows the banking regulator made net profits of around Tk 230 billion in FY25, an increase of 52 per cent from Tk 151 billion recorded in the previous fiscal year.
Net profits were Tk 107.5 billion in the 2022-23 financial year.
Seeking anonymity, a central bank official said the banking regulator had earned the highest amount from repo and special repo against short-term loans given to several banks in the last fiscal year.
He said the central bank had increased the policy rate in phases to 10 per cent from 8.0 per cent to contain the high inflationary pressure after the changeover in state power following last year's July-August mass uprising.
This had made a significant contribution to the rise in net profits, he added.
On condition of anonymity, another central banker said commercial banks' dependency on the Bangladesh Bank's available liquidity-feeding windows continued to grow significantly amid the prevailing economic sluggishness.
"This is one of the main factors behind the record rise in net profits," he said.
Data shows scheduled banks altogether borrowed Tk 1.77 trillion through the central bank's repo and special liquidity facilities in March 2025.
Banks' monthly borrowings from the central bank were Tk 1.80 trillion, Tk 2.49 trillion, and Tk 2.26 trillion in April, May, and June, respectively.
Dr M Masrur Reaz, an economist and chairman of Policy Exchange Bangladesh, said it was not an uncommon practice globally for central banks to make profits.
Given such high levels of profits amid a depressed investment landscape, he said, the Bangladesh Bank could now look into how it could minimise the costs of its services and liquidity support.
This would ultimately help reduce the cost of business for financial institutions and their clients amid the high inflation, he added.
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