Staff Correspondent:

The volume of lending and receipts of inward remittances through agent- banking channels rose considerably in the first quarter (Q1) of 2025, driven by the increased accessibility of banking services near rural households.

According to the latest Bangladesh Bank (BB) data, total disbursements of loan by agent banks surged by 61.61 per cent year-on-year to reach Tk 266.37 billion during the January-March period of this year.

On a quarterly basis, disbursement of loan rose by 10.86 per cent compared to the previous quarter as the amount stood at Tk 240.28 billion in December 2024.

The amount of deposits with agent banks also increased by 2.40 per cent, reaching Tk 429.63 billion as of March last, the BB figures showed.

Inward remittance disbursements through agent outlets saw a notable rise by 4.51 per cent in the same quarter.

According to the official data, the loan-to-deposit ratio in the agent banking was recorded at 62.00 per cent in Q1 from the previous quarter’s 57.27 per cent as more banks expanded their lending operations through agent networks.

The total deposits in rural areas increased by 2.98 per cent, while deposits in urban areas grew by just 0.01 per cent over the previous quarter.

Deposits from male customers rose by 2.65 per cent, while deposits from female customers saw a 6.56 per cent rise.

The comparatively higher growth in the deposits from female customers helped narrow the gap between male and female account holders in terms of total deposit volume, the BB data revealed.

Currently, 23 out of the 31 banks are engaged in agent banking and actively disbursing loans, which reflects a growing trust in the decentralised lending model.

The cumulative amount of remittances distributed through agent banking stood at Tk 1.81 trillion at the end of March 2025, according to the BB data.

The BB introduced agent banking in 2013 with the aim of providing a safe alternate delivery channel for banking services, targeting underserved populations in geographically remote locations where full-fledged bank branches are hard to reach.

Through agent banking outlets, customers can access a range of banking services, including deposits, loans, overseas and local remittances, payment services (such as utility bills and taxes), and government social safety-net benefits.

According to the latest quarterly report, agent banking continues its overall growth trajectory across most indicators.

As of March 31, 2025, a total of 31 banks were offering agent banking services through 21,023 outlets operated by 15,838 agents.

Despite a slight decline in the numbers of agents and outlets with 1.14 per cent and 1.06 per cent respectively, the number of total accounts opened with agent banks rose by 2.46 per cent to reaching 24.67 million.

Of the accounts, 49.40 per cent belong to female customers, and 85.52 per cent are held by clients in rural areas.

The number of female-owned accounts grew by 1.72 per cent in the Q1 quarter of this year, surpassing male-owned ones, reflecting an increase in the participation of women in the formal financial system.