Sub-branch Lending Outpaces Sector Growth

Outstanding loans and advances disbursed through sub-branches of scheduled banks recorded a significant rise in July–September 2025, surpassing the overall growth of the banking sector, according to the latest figures from Bangladesh Bank (BB).

Data show that total loans through sub-branches rose from Tk 172.77 billion in April–June 2025 to Tk 186.45 billion in July–September 2025, reflecting a robust 7.9 per cent growth. In contrast, the banking sector as a whole experienced only a marginal 0.4 per cent increase in loans during the same period.

Despite this relative outperformance, sub-branch lending still constitutes a small fraction of the sector, accounting for just 1.1 per cent of the aggregate loans and advances of scheduled banks. The rural share of these loans, however, declined from 34.8 per cent to 30.0 per cent, highlighting slower credit expansion in rural areas compared to urban centres.

Women’s participation in sub-branch lending also saw a slight decline. The proportion of loans disbursed to women dropped from 15.2 per cent to 14.8 per cent, while the share of women’s loan accounts fell from 20.0 per cent to 19.5 per cent. Nevertheless, the total number of loan accounts grew from 205,904 to 221,037, indicating a 7.3 per cent increase.

On the deposit side, sub-branches continued to outperform the sector average. Total deposits collected through sub-branches increased from Tk 680.71 billion to Tk 720.56 billion, a 5.9 per cent growth, compared with the overall banking sector’s 1.7 per cent deposit growth. The share of sub-branch deposits in total scheduled bank deposits edged up slightly from 3.4 per cent to 3.5 per cent.

However, rural deposits declined modestly from 33.7 per cent to 31.8 per cent, reflecting ongoing urban dominance in deposit mobilisation. Women’s participation in deposits showed a positive trend, with the share of women’s deposit accounts rising from 26.3 per cent to 27.0 per cent. Overall, the total number of deposit accounts grew from 6.78 million to 7.21 million, with women’s accounts maintaining a steady share at 36.8 per cent, up slightly from 36.7 per cent.

The data suggest that while sub-branches are playing a critical role in driving both credit and deposit growth beyond sector averages, focused efforts are needed to enhance rural lending and women’s financial inclusion.

Sub-branch Distribution and Leading Banks (End-September 2025)

The highest concentration of sub-branches was observed in Dhaka, followed by Chattogram and Cumilla. Among individual banks, IFIC Bank PLC led with 1,225 sub-branches, followed by NRBC Bank PLC with 693, illustrating the strategic emphasis of major banks on sub-branch networks to bolster outreach.