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Bangladesh's Islamic banking sector continued to post steady growth across key indicators, including investment, in August 2025, according to the latest data from Bangladesh Bank (BB).
The Islamic Banking System also recorded considerable growth in investments, rising from Tk 5.17 trillion in August 2024 to Tk 5.72 trillion in August 2025, a growth of 10.55 per cent.
Conventional Banking System outpaced them, growing from Tk 15.55 trillion in August 2024 to Tk 17.36 trillion in August 2025, marking a growth of 11.66 per cent, according to Bangladesh Bank ( BB) data revealed.
The Islamic banking system recorded a moderate increase in deposits, growing from Tk 4.32 trillion in August 2024 to Tk 4.62 trillion in August 2025, marking a 7.06 per cent growth.
Experts said Islamic banks showed strong investment and asset growth, reflecting rising customer trust and competitiveness.
However, they noted that slower deposit growth and falling import payments point to liquidity pressures, calling for better product diversification and stronger risk management.
Islamic banks recorded their total assets increase from Tk 8.41 trillion in August 2024 to Tk 9.43 trillion in August 2025, marking a robust growth of approximately 12.11 per cent.
If point to point comparison is considered then it is found that in August 2025 Islamic banks achieved a growth of around 12.32 per cent in receiving export proceeds, reveals BB data.
The amount was $775 million in August 2025 while it was $690 million at the same time of the previous year.
In August 2025, Islamic banks made around 19.84 per cent of total import payments of the economy. Their import payment decreased from $1.13 billion in August 2024 to $0.89 billion in August 2025, which reflects a 20.84 per cent decrease as compared to the same time point of the previous year.
Islamic banks experienced their remittance share increase from around 24 per cent in August 2024 to around 25.19 per cent in August 2025. The Islamic banks saw $610 million at the end of August 2025.
The data reveals that in August 2024, Islamic banks accounted for 53.67 per cent of the total deposits in the agent banking arena.
The value was about Tk 205 billion at that time. This value rose to about Tk 260 billion in August 2025 against 205 billion in August 2024 recording a 27.01 per cent growth.
Dr. Masrur Reaz, chairman of Policy Exchange Bangladesh (PEB), said the steady growth of the Islamic banking sector reflects its evolving customer demand and growing base, and stronger institutional discipline.
"Over the past year, Islamic banks are showing resilience and competitiveness, particularly in investment growth and asset expansion," he noted. "However, the sector needs to further diversify its products, strengthen governance and risk management, and align with international best practices to sustain this momentum."
He added that the relatively slower deposit growth compared to investments suggests a need for enhanced liquidity management and stronger customer confidence-building measures, especially amid increasing competition from conventional banks.
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