Agent banking network shrinks following Agrani Bank’s exit

Bangladesh's agent banking network contracted in terms of agents and outlets in the October-December quarter of 2025, mainly due to the closure of all agent banking activities of Agrani Bank PLC.

However, deposits, loans and transaction values continued to record healthy growth, according to the latest data from Bangladesh Bank (BB).

As of December 2025, the total number of agents stood at 15,328, including 2,440 in urban areas and 12,888 in rural areas.

Compared to December 2024, the total number of agents fell by 4.3 per cent, with urban agents declining by 4.0 per cent and rural agents by 4.4 per cent.

All divisions recorded negative annual growth, largely due to the discontinuation of Agrani Bank PLC's agent banking operations.

On a quarterly basis, however, the contraction was marginal, with the number of agents decreasing by only seven compared to September 2025.

All divisions except Mymensingh, Rajshahi and Rangpur posted growth during the quarter.

The total number of agent banking outlets stood at 20,501 in December 2025 -- 2,973 in urban areas and 17,528 in rural areas.

Year-on-year, total outlets declined by 3.5 per cent, with urban outlets down by 3.2 per cent and rural outlets by 3.6 per cent.

Quarter-on-quarter, total outlets edged up by 0.1 per cent, as urban outlets increased by 0.6 per cent while rural outlets declined slightly.

Despite the contraction in agents and outlets, deposit accounts continued to expand.

Total deposit accounts reached 25,832,979 in December 2025, including 3,990,949 in urban areas and 21,842,030 in rural areas.

Compared to December 2024, total accounts increased by 7.3 per cent, with urban accounts growing by 14.4 per cent and rural accounts by 6.1 per cent. On a quarterly basis, total deposit accounts rose by 2.9 per cent.

Total deposit balances amounted to Tk 493.56 billion in December 2025, of which Tk 84.80 billion were in urban areas and Tk 408.76 billion in rural areas.

Year-on-year, total balances increased by 18.1 per cent, with urban balances rising by 4.9 per cent and rural balances by 21.3 per cent.

Compared to September 2025, overall deposit balances grew by 4.6 per cent, with all divisions posting positive quarterly growth.

Loan indicators also showed steady expansion. The total number of loan accounts reached 239,215 in December 2025 -- 57,424 in urban areas and 181,791 in rural areas.

Year-on-year, total loan accounts increased by 6.2 per cent, while outstanding loans rose by 16.3 per cent to more than Tk 117.55 billion.

Of this, Tk 43.56 billion were in urban areas and Tk 73.99 billion in rural areas. Quarter-on-quarter, outstanding loans increased by 5.6 per cent.

Transaction numbers declined, but values increased.

During October-December 2025, total transactions stood at 26,192,428, down 3.0 per cent year-on-year.

However, the total transaction amount rose by 5.2 per cent to Tk 1.42 trillion, including Tk 247.16 billion in urban areas and Tk 1.18 trillion in rural areas. Compared to the previous quarter, transaction value increased by 1.3 per cent.

Female participation improved modestly.

The number of female-owned agents increased by 4.9 per cent year-on-year, while female-owned deposit and loan accounts grew by 7.5 per cent and 6.4 per cent respectively, although their overall share remains limited.

Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said the latest agent banking data reflect a structural adjustment rather than a slowdown in financial inclusion.

"The contraction in agents and outlets, largely triggered by the exit of a major state-owned bank's operations, has not derailed deposit mobilisation or credit expansion," he said.

"Strong growth in deposits, outstanding loans and transaction values suggests rising customer confidence and deeper usage of agent banking channels, particularly in rural areas."

He added that sustaining momentum would require stronger digital integration, improved agent viability, and faster expansion of female agent participation to meet regulatory targets and ensure inclusive growth.

sajibur@gmail.com