Banks in Bangladesh

The banking sector in Bangladesh is diverse and consists of various types of banks catering to different segments of the economy. These include public sector banks, private sector banks, foreign banks, specialized banks, and Islamic banks.

Banks in Bangladesh:

The banking sector in Bangladesh consists of several types of institutions. Bangladesh Bank is the central bank of Bangladesh and the chief regulatory authority in the banking sector. Pursuant to the Bangladesh Bank Order, 1972, the Government of Bangladesh reorganized the Dhaka Branch of the State Bank of Pakistan as the central bank of the country and named it Bangladesh Bank with retrospective effect from 16 December, 1971.

See also:
❏ Financial system in Bangladesh

After independence, the banking industry in Bangladesh started its journey with 6 nationalized commercial banks, 3 state-owned specialized banks, and 9 foreign banks. In the 1980s, the banking industry achieved significant expansion with the entrance of private banks. Besides Bangladesh Bank, banks in Bangladesh are primarily categorized into two types: Scheduled and Non-Scheduled banks.

Central Bank (Bangladesh Bank):

Bangladesh Bank (BB) is the central bank of Bangladesh and a member of the Asian Clearing Union. It is fully owned by the Government of Bangladesh. Bangladesh Bank, the central bank and apex regulatory body for the country’s monetary and financial system, was established in Dhaka as a body corporate via the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972), effective from 16th December, 1971. It currently has ten offices located at Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, Rangpur, and Mymensingh in Bangladesh. As of March 31, 2015, the total manpower stood at 5,807 (3,981 officials and 1,826 subordinate staff).

Scheduled Banks:

Scheduled banks are licensed under the Bank Company Act, 1991 (amended up to 2013) and are listed under the Bangladesh Bank Order, 1972. These banks operate under the full control and supervision of Bangladesh Bank. Currently, there are 61 scheduled banks in Bangladesh. Scheduled banks are classified into the following types:

State Owned Commercial Banks (SOCBs):

There are 6 state-owned commercial banks (SOCBs) in Bangladesh that are government-owned institutions providing a wide range of banking services, including retail banking, corporate banking, and SME banking. These banks play a significant role in the financial sector, ensuring financial inclusion and supporting various government initiatives. They are fully or majorly owned by the Government of Bangladesh.

• Agrani Bank PLC: Agrani Bank PLC is a prominent state-owned commercial bank in Bangladesh, offering a diverse range of banking services across the country.
• Bangladesh Development Bank PLC: Bangladesh Development Bank PLC is a state-owned specialized bank in Bangladesh that focuses on industrial financing and development projects to promote economic growth.
• BASIC Bank PLC: BASIC Bank PLC (Bangladesh Small Industries and Commerce Bank PLC) is a state-owned specialized bank in Bangladesh that focuses on providing industrial and commercial loans, particularly to small and medium enterprises (SMEs).
• Janata Bank PLC: Janata Bank PLC is one of the largest state-owned commercial banks in Bangladesh, with extensive domestic and international operations.
• Rupali Bank PLC: Rupali Bank PLC is a major state-owned commercial bank in Bangladesh that provides comprehensive banking services to individuals and businesses.
• Sonali Bank PLC: Sonali Bank PLC is the largest state-owned commercial bank in Bangladesh, providing a wide range of banking services to individuals, businesses, and institutions.

Specialized Banks (SDBs):

There are 3 specialized banks in Bangladesh designed to cater to specific sectors of the economy or particular financial needs that are not typically addressed by commercial banks. These banks play a crucial role in promoting economic development by focusing on areas such as agriculture, industry, housing, and poverty alleviation. They are also fully or majorly owned by the Government of Bangladesh.

• Bangladesh Krishi Bank (BKB): Bangladesh Krishi Bank (BKB) is a specialized bank focusing primarily on the agricultural sector in Bangladesh.
• Probashi Kallyan Bank (PKB): Probashi Kallyan Bank (PKB) is a specialized financial institution in Bangladesh established to cater to the needs of expatriate Bangladeshis and their families.
• Rajshahi Krishi Unnayan Bank (RAKUB): Rajshahi Krishi Unnayan Bank (RAKUB) is a specialized bank in Bangladesh dedicated to agricultural development in the Rajshahi and Rangpur divisions.

Private Commercial Banks (PCBs):

There are 44 private commercial banks in Bangladesh that play a crucial role in the financial sector, offering a diverse range of banking services to individuals, businesses, and institutions. These banks are privately owned and operate based on traditional banking principles. Private commercial banks (PCBs) can be categorized into two groups:

• Conventional Private Commercial Banks (PCBs) &
• Islamic Shariah based Private Commercial Banks (ISPCBs).

Conventional Private Commercial Banks (CPCBs):

There are 34 conventional private commercial banks (CPCBs) in Bangladesh that operate based on traditional banking principles. They offer a range of financial products and services, including deposit accounts, loans, credit facilities, and investment services, primarily based on interest-based operations.

• AB Bank PLC: AB Bank PLC is one of the leading private commercial banks in Bangladesh. Established in 1982, it was the first private sector bank in the country.
• Bangladesh Commerce Bank PLC: Bangladesh Commerce Bank PLC is a private commercial bank in Bangladesh that offers a variety of banking services aimed at catering to the needs of individuals, businesses, and institutions.
• Bank Asia PLC: Bank Asia PLC is a leading private commercial bank in Bangladesh, known for its innovative banking solutions and extensive range of services.
• Bengal Commercial Bank PLC: Bengal Commercial Bank PLC is a relatively new entrant in the private banking sector of Bangladesh, aiming to offer comprehensive banking services and foster economic development.
• BRAC Bank PLC: BRAC Bank PLC is one of the leading private commercial banks in Bangladesh, renowned for its focus on small and medium enterprises (SMEs) and innovation in banking services.
• City Bank PLC: City Bank PLC is one of the oldest and most prominent private commercial banks in Bangladesh. Established in 1983.
• Citizens Bank PLC: Citizens Bank PLC is a private commercial bank in Bangladesh that aims to provide a wide range of banking services with a focus on customer satisfaction and financial inclusion.
• Community Bank Bangladesh PLC: Community Bank Bangladesh PLC is a private commercial bank established to provide comprehensive banking services with a strong focus on community development and financial inclusion.
• Dhaka Bank PLC: Dhaka Bank PLC is a renowned private commercial bank in Bangladesh, offering a comprehensive suite of banking services tailored to meet the needs of individuals, businesses, and institutions.
• Dutch-Bangla Bank PLC: Dutch-Bangla Bank PLC is a prominent private commercial bank in Bangladesh, well-known for its technological advancements and wide range of banking services.
• Eastern Bank PLC: Eastern Bank PLC is a leading private commercial bank in Bangladesh, known for its innovative banking solutions and customer-centric approach.
• IFIC Bank PLC: IFIC Bank PLC (International Finance Investment and Commerce Bank PLC) is a private commercial bank in Bangladesh, offering a wide range of financial products and services to individuals, businesses, and institutions.
• Jamuna Bank PLC: Jamuna Bank PLC is a private commercial bank in Bangladesh, providing a wide array of financial services to individuals, businesses, and institutions.
• Meghna Bank PLC: Meghna Bank PLC is a private commercial bank in Bangladesh, known for its customer-centric approach and innovative banking solutions.
• Mercantile Bank PLC: Mercantile Bank PLC is a well-established private commercial bank in Bangladesh, offering a wide range of financial products and services.
• Midland Bank PLC: Midland Bank PLC is a relatively new private commercial bank in Bangladesh, committed to offering innovative and customer-friendly banking solutions.
• Modhumoti Bank PLC: Modhumoti Bank PLC is a private commercial bank in Bangladesh, known for its innovative banking services and customer-focused approach.
• Mutual Trust Bank PLC (MTB): Mutual Trust Bank PLC (MTB) is a leading private commercial bank in Bangladesh, dedicated to providing a wide range of financial products and services to its customers.
• Nagad Digital Bank PLC: Nagad Digital Bank PLC is an emerging digital banking institution in Bangladesh, focused on providing modern and convenient banking solutions through digital platforms.
• National Bank Limited: National Bank Limited is one of the oldest private commercial banks in Bangladesh, offering a comprehensive range of financial services to individuals, businesses, and institutions.
• National Credit & Commerce (NCC) Bank PLC: National Credit & Commerce (NCC) Bank PLC is a prominent private commercial bank in Bangladesh, dedicated to providing a wide array of banking services to meet the needs of individuals, businesses, and institutions.
• NRB Bank PLC: NRB Bank PLC is a private commercial bank in Bangladesh, primarily focused on serving the Non-Resident Bangladeshi (NRB) community.
• NRB Commercial (NRBC) Bank PLC: NRB Commercial (NRBC) Bank PLC is a private commercial bank in Bangladesh, designed to cater to the financial needs of both Non-Resident Bangladeshis (NRBs) and local customers.
• One Bank PLC: One Bank PLC is a private commercial bank in Bangladesh, offering a range of financial services and products designed to meet the needs of individuals, businesses, and institutions.
• Padma Bank PLC: Padma Bank PLC is a private commercial bank in Bangladesh that offers a variety of banking services and financial products to individuals, businesses, and institutions.
• Premier Bank PLC: Premier Bank PLC is a private commercial bank in Bangladesh, dedicated to providing a comprehensive range of banking services and financial products.
• Prime Bank PLC: Prime Bank PLC is a leading private commercial bank in Bangladesh, offering a wide array of financial services and products.
• Pubali Bank PLC: Pubali Bank PLC is one of the largest private commercial banks in Bangladesh, offering a comprehensive range of financial services.
• Shimanto Bank PLC: Shimanto Bank PLC is a private commercial bank in Bangladesh, dedicated to providing a variety of banking services and financial products.
• Southeast Bank PLC: Southeast Bank PLC is a prominent private commercial bank in Bangladesh, known for its extensive range of financial services and commitment to customer satisfaction.
• South Bangla Agriculture and Commerce (SBAC) Bank PLC: SBAC Bank PLC is a private commercial bank in Bangladesh, focusing on providing a range of financial services with an emphasis on agricultural and commercial sectors.
• Trust Bank PLC: Trust Bank PLC is a leading private commercial bank in Bangladesh, known for its comprehensive range of financial products and services.
• United Commercial Bank PLC (UCB): United Commercial Bank PLC (UCB) is one of the largest and oldest private commercial banks in Bangladesh. The bank offers a wide range of financial products and services, focusing on innovation and customer satisfaction.
• Uttara Bank PLC: Uttara Bank PLC is one of the oldest and most prominent private commercial banks in Bangladesh. With a long history of serving the financial needs of individuals and businesses.

Islamic Shariah based Private Commercial Banks (ISPCBs):

There are 10 Islamic Shariah-based private commercial banks (ISPCBs) in Bangladesh. They conduct banking activities according to Islamic Shariah principles, avoiding interest (riba) and engaging in ethical investment and trading activities, such as the Profit-Loss Sharing (PLS) mode.

• Al-Arafah Islami Bank PLC: Al-Arafah Islami Bank PLC was established in 1995 with a focus on providing various Islamic banking products and services including Murabaha, Mudaraba, and Ijarah.
• EXIM Bank PLC: EXIM Bank PLC, formerly known as Export Import Bank of Bangladesh Limited, was established in 1999. It converted into a full-fledged Islamic bank in 2004.
• First Security Islami Bank PLC: First Security Islami Bank PLC was established in 1999 and operates based on Islamic Shariah principles.
• Global Islami Bank PLC: Global Islami Bank PLC, formerly known as NRB Global Bank Limited, was established in 2013 and converted to a full-fledged Islamic bank in 2020.
• ICB Islamic Bank PLC: ICB Islamic Bank PLC, formerly known as Oriental Bank Limited, was converted to an Islamic bank in 2007.
• Islami Bank Bangladesh PLC: The first Islamic bank in Southeast Asia, established in 1983. It offers a range of Shariah-compliant products and services including deposits, investments, and Islamic financing.
• Shahjalal Islami Bank PLC: Shahjalal Islami Bank PLC was established in 2001 and focuses on providing Islamic banking services.
• Social Islami Bank PLC: Social Islami Bank PLC was founded in 1995. It offers a wide range of Shariah-compliant financial products and services.
• Standard Bank PLC: Standard Bank PLC was established in 1999 as a conventional bank, and it began offering Islamic banking services through a dedicated Islamic banking division.
• Union Bank PLC: Union Bank PLC was established in 2013, and operates based on Islamic Shariah principles.

Foreign Commercial Banks (FCBs):

There are a total of 9 Foreign Commercial Banks (FCBs) operating in Bangladesh as branches of banks incorporated abroad. These banks provide services alongside local public commercial banks in Bangladesh and are known for their high reputations.

• Bank Al-Falah Limited: Bank Al-Falah Limited is a leading private bank in Pakistan with a significant presence in Bangladesh.
• Citibank N.A. Bangladesh: Citibank N.A. Bangladesh is a branch of Citibank, a global financial institution headquartered in New York. Operating in Bangladesh since 1987.
• Commercial Bank of Ceylon PLC: Commercial Bank of Ceylon PLC is a leading private bank based in Sri Lanka, with a notable presence in Bangladesh. Established in 1920.
• Habib Bank Limited (HBL): Habib Bank Limited (HBL) is a prominent Pakistani bank with a significant international presence, including operations in Bangladesh. Established in 1941.
• HSBC (Hongkong and Shanghai Banking Corporation): HSBC (Hongkong and Shanghai Banking Corporation) is a leading global bank with a strong presence in Bangladesh. Established in 1996 in Bangladesh.
• National Bank of Pakistan: National Bank of Pakistan (NBP) is a major state-owned bank based in Pakistan, with operations extending to Bangladesh and other countries. Established in 1949.
• Standard Chartered Bank: Standard Chartered Bank is a leading international bank with a significant presence in Bangladesh. Established in Bangladesh in 1948.
• State Bank of India (SBI): State Bank of India (SBI) is India’s largest public sector bank, with a significant presence in Bangladesh. Established in Bangladesh in 1975.
• Woori Bank Bangladesh: Woori Bank Bangladesh is a subsidiary of Woori Bank, a leading South Korean financial institution. Established in Bangladesh in 1996.

Non-Scheduled Banks:

The banks established for specific and definite objectives and operate under particular acts but are not Scheduled Banks. These banks cannot perform all functions of scheduled banks. There are currently 6 non-scheduled banks in Bangladesh.

• Ansar VDP Unnayan Bank: Ansar VDP Unnayan Bank is a specialized state-owned bank in Bangladesh, primarily focused on providing financial services to the members of the Ansar and Village Defence Party (VDP) and their families.
• Bangladesh Samabaya Bank Limited: Bangladesh Samabaya Bank Limited is a specialized bank in Bangladesh focused on promoting cooperative banking and financial inclusion.
• Grameen Bank: Grameen Bank is a pioneering microfinance institution in Bangladesh, known for its innovative approach to providing financial services to the rural poor.
• Jubilee Bank: Jubilee Bank is a private commercial bank in Bangladesh that offers a range of banking services to individuals, businesses, and institutions.
• Karmashangosthan Bank: Karmashangosthan Bank is a specialized bank in Bangladesh dedicated to providing financial services to support employment generation and skill development initiatives.
• Palli Sanchay Bank: Palli Sanchay Bank is a specialized state-owned bank in Bangladesh focused on providing financial services to rural communities.

Amalgamation:

On April, 2024 the central bank of Bangladesh issued banking merger policy for merger of weak banks with strong banks – both voluntary and mandatory. Following merger process are ongoing:

• Padma Bank PLC merged with EXIM Bank PLC
• National Bank Limited merged with United Commercial Bank PLC (UCB)
• BASIC Bank PLC merged with City Bank PLC
• Bangladesh Development Bank PLC merged with Sonali Bank PLC
• Rajshahi Krishi Unnayan Bank (RAKUB) merged with Bangladesh Krishi Bank (BKB)

These banks collectively contribute to the financial system in Bangladesh, supporting economic growth, development, and financial inclusion by providing a wide range of financial products and services to individuals, businesses, and various sectors of the economy.