Islamic banks in Bangladesh experienced a decline in key financial indicators in January 2026, according to the latest Bangladesh Bank report. Deposits in the sector fell by about Tk 2,569 crore, while investments dropped by Tk 176 crore. At the end of January, total deposits stood at Tk 4,73,657 crore, down 0.57 percent from December. Despite the monthly fall, deposits were 9.34 percent higher than a year earlier.

The report showed that ten full-fledged Islamic banks held Tk 4,04,023 crore in deposits, while Islamic branches of conventional banks had Tk 42,623 crore, and Islamic windows held Tk 26,010 crore. The sector’s investment position stood at Tk 5,84,574 crore, slightly lower than December’s Tk 5,84,750 crore, though up by over 11 percent year-on-year. Remittance inflows through Islamic banks fell by about seven percent, and export earnings dropped four percent, while imports rose by more than 16 percent.

Industry sources attributed the deposit decline partly to customer withdrawals following the merger of several Islamic banks, which have begun refunding Tk 2 lakh per depositor.