Public sector credit growth surged nearly 30 percent year on year in February 2026, the highest in five months, according to a report by the General Economics Division published today.
In February 2025, credit growth to the public sector was 26.15 percent, said the report.
“Public sector credit growth accelerates sharply, partly reflecting increased government borrowing amid mounting energy-related fiscal pressures,” said the GED in its April issue of the Economic Update & Outlook.
Private sector credit similarly increased, though year-on-year growth held steady at 6.03 percent in both months.
The report said that over the period till February 2026, both bank deposits and credit disbursement have shown a broadly positive trajectory, reflecting a gradual recovery and improved confidence in the banking sector.
Total deposits recorded consistent year-on-year growth throughout the period, and credit to both the public and private sectors trended upward in absolute terms, the report said.
Total bank deposits reached Tk 19.95 lakh crore in February, registering year-on-year growth of 11.28 percent.
The figure was up from Tk 19.67 lakh crore in January, when deposits had grown 10.44 percent year on year.
The GED report said there were some good signs in the economy as inflation edged down in March 2026, as rice price relief offset persistent pressure from meat, fish, and vegetables. Strong remittance inflows and higher foreign exchange reserves than the past year provided a critical buffer for external sector stability.
However, it said rising global energy costs and Middle East tensions pose renewed risks to inflation, the trade deficit, and exchange rate stability.
The report said reserve levels have remained at a comfortable threshold, providing a critical buffer against ongoing global uncertainties, including Persian Gulf tensions, which have contributed to energy price volatility.
‘Overall, the reserve dynamics point to enhanced external sector resilience, with Bangladesh maintaining adequate liquidity to navigate short-term shocks while preserving macroeconomic stability.”
“Export now faces pressure from weak demand and rising energy costs. A cautious policy framework is required to address the ongoing energy crisis.”
