The Islamic banking sector in Bangladesh recorded impressive growth across multiple key indicators in September 2025, according to the latest data from Bangladesh Bank. Despite a significant decline in export proceeds, deposits, investments, total assets, and remittance inflows all showed robust year-on-year expansion, signalling growing confidence in Shariah-compliant financial services.
Deposits at Islamic banks rose from Tk 4.34 trillion in September 2024 to Tk 4.67 trillion in September 2025, reflecting a growth of 7.52 per cent. Meanwhile, investments in the sector grew even faster, rising from Tk 5.17 trillion to Tk 5.73 trillion, marking an increase of 10.86 per cent.
The following table summarises the key performance indicators:
| Indicator | September 2024 | September 2025 | Growth |
|---|---|---|---|
| Total Deposits | Tk 4.34 trillion | Tk 4.67 trillion | 7.52% |
| Total Investments | Tk 5.17 trillion | Tk 5.73 trillion | 10.86% |
| Total Assets | Tk 8.50 trillion | Tk 9.54 trillion | 12.26% |
| Agent Banking Deposits | Tk 209 billion | Tk 264 billion | 26.35% |
The total banking system also demonstrated healthy expansion. System-wide deposits increased from Tk 18.58 trillion to Tk 20.63 trillion, an 11.02 per cent rise, while total investments climbed from Tk 20.84 trillion to Tk 23.28 trillion, showing 11.72 per cent year-on-year growth.
Islamic banks’ total assets expanded from Tk 8.50 trillion to Tk 9.54 trillion, reflecting a robust 12.26 per cent increase. However, export earnings channelled through Islamic banks fell sharply by 16 per cent, dropping from $837 million in September 2024 to $703 million in September 2025.
Import payments also declined slightly, from $1.07 billion to $1.01 billion, representing a 5.23 per cent decrease. In contrast, remittance inflows showed remarkable growth. Islamic banks’ share of remittances increased from 22.45 per cent in September 2024 to 30.44 per cent in September 2025. Total remittances rose from $540 million to $818 million over the same period.
Agent banking deposits further highlighted the sector’s dominance. Islamic banks maintained a 55.36 per cent share in September 2024, and deposits rose from Tk 209 billion to Tk 264 billion, a 26.35 per cent year-on-year growth.
Experts suggest that these figures indicate a continued shift towards Shariah-compliant banking, particularly for remittances and deposit mobilisation. The decline in export proceeds, however, highlights structural weaknesses in the external sector, including global demand fluctuations and domestic shipment delays.
Dr Masrur Reaz, chairman of Policy Exchange Bangladesh (PEB), noted, “The Islamic banking sector’s steady growth demonstrates its increasing relevance in the country’s financial landscape. The numbers highlight strong customer confidence, especially among migrants and rural households, in Shariah-compliant channels.”
He cautioned, however, that the sharp drop in export earnings reflects structural challenges. “Islamic banks must diversify product portfolios, strengthen trade finance capabilities, and improve compliance standards to capture a larger share of export proceeds,” Dr Reaz added. He further emphasised that sustained growth will depend on governance reforms, enhanced oversight, and technology-driven service expansion.
“Islamic banks are well-positioned to play a greater role, but efficiency, transparency, and innovation will be crucial to remain competitive in a rapidly evolving financial environment,” he concluded.