The number of bank accounts with deposits exceeding Tk 1 crore rose to 118,784 as of June, According to data from Bangladesh Bank.

The central bank data indicated that the number of bank accounts exceeding Tk 1 crore increased by 2,894 in the quarter ending June, rising from 115,890 at the end of March.

The figure was 116,908 at the end of December and 113,554 in June 2023.

Despite this growth in high-value accounts, the majority of bank accounts in Bangladesh hold relatively small amounts.

Out of the total 15.35 crore bank accounts nationwide, 11.31 crore accounts hold less than Tk 5,000 each, according to the central bank data.

The accounts holding more than Tk 1 crore represent only 0.075 per cent of the total bank accounts, yet they account for about 42 per cent of aggregate deposits.

The total deposits in the banking sector stood at Tk 17.62 lakh crore at the end of June.  It included Tk 7.73 lakh crore in accounts holding more than Tk 1 crore.

Among the accounts with over Tk 1 crore deposits, 1,818 accounts held deposits over Tk 50 crore each, collectively holding more than Tk 2.69 lakh crore.

The volume of money in accounts holding Tk 1 crore each was Tk 7.3 lakh crore at the end of June 2023, and Tk 6.77 lakh crore at the end of December 2022.

This trend of increasing high-value accounts has been consistent over the past five years, with the number of accounts holding over Tk 1 crore rising from 75,563 in December 2018 to 101,976 by the end of December 2021.

Bankers attribute the rise in high-value deposits to the country’s economic challenges, such as soaring inflation, rising external debts, a dollar crisis, declining foreign reserves, and energy shortages, which have limited investment opportunities for wealthy individuals.

They also noted that the government’s significant borrowing from the central bank, involving money printing, has increased liquidity in the financial market.

According to the Bangladesh Bureau of Statistics, inflation in Bangladesh reached 10.49 per cent in August, with overall inflation remaining above 9 per cent for the past 12 months, driven by rising prices of essential commodities.

Experts have observed that the increase in accounts holding more than Tk 1 crore is linked to persistently high inflation, as some businesspeople capitalise on the crisis.

They also noted that while many accounts hold minimal amounts, a small number contain substantial sums, indicating a concentration of wealth among a select few and a growing inequality.