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POST TIME: 10 September, 2018 00:00 00 AM
Islamic banking continues to show rapid expansion
BSS

Islamic banking continues to 
show rapid expansion

The investment with the Islamic banking accounts increased by 17.05 per cent at end of the April-June quarter of 2018 compared to the corresponding period of the preceding year, 2017, reports BSS.

“Among different segments of Bangladesh’s Islamic finance Industry, the Islamic banking industry is dominating. The Islamic banking segment continued to show rapid expansion in terms of growth of assets, deposits, investments and number of account holders,” a Bangladesh Bank (BB) senior official told BSS here today.

According to the BB latest data, the total investments (loans in conventional sense) in Islamic banking sector stood at Tk 2,16,827.43 crore at the end of April-June 2018 quarter, which went up by Tk 7,679.52 crore or by 3.67 per cent compared to the previous quarter and by Tk 31,582.50 crore or by 17.05 per cent compared to the corresponding quarter of the preceding year.

During the April-June period, the total deposits in the banking industry reached Tk 2,24,757.80 crore, which increased by Tk 9,199.87 crore or by 4.27 per cent compared to the previous quarter and by Tk 25,332.90 crore or by 12.70 per cent compared to the corresponding quarter of the last year.

The Investment-Deposit Ratio (credit-deposit ratio in conventional sense) reached 0.96 in April-June quarter which was 0.97 in the previous quarter of 2018 and 0.93 at the end of June 2017.

The total remittances mobilized by the Islamic banking sector stood at Tk 11,461.90 crore at the end of April-June 2018 quarter, which was higher by Tk 2,421.94 crore or by 26.79 per cent compared to the previous quarter as well as higher by Tk 2,595.08 crore or by 29.27 per cent compared to the corresponding quarter of the preceding year.

The number of branches of Islamic banking sector including Islamic branches or windows of conventional commercial banks stood at 1,178 at the end of the April-June quarter while there were 1,169 branches during the previous quarter and 1,112 during the corresponding quarter of 2017.

After analyzing the sector-wise investments, it is observed that investment in the trade and business sector was 31.25 per cent, which was the highest among all sectors at the end o f April-June quarter, 2018.

The next position was occupied by industrial sector, which stood at 27.42 per cent followed by Micro Small and Medium Enterprises (MSME) (24.69 per cent), others (6.49 per cent), real estate (6.27 per cent), agriculture (1.54 per cent), transportation (1.39 per cent), electricity, gas and water supply (0.87 per cent) and poverty alleviation (0.09 per cent).