The flow of remittances to state banks is consistently decreasing. In the second quarter (April-June), the participation of six state-owned commercial banks in remittance earnings fell by 35% compared to that of the same period of the previous year.
According to the latest data from Bangladesh Bank, this continued even in the first 15 days of the ongoing September.
The overall remittance inflow was $5733.42 million during the April-June quarter of 2022.
Agrani Bank, Janata Bank, Rupali Bank, Sonali Bank, BDBL and Basic Bank collectively only received $928 million.
Data analysis shows that it’s nearly $500 million or 34.84% down from $1,425 million of the corresponding time of the previous year.
Hence, in Q2 of 2022, the overall contribution of the state banks to the country’s remittance influx decreased to 16.2% from 23.06%.
Among the state-run banks, Agrani Bank performed the best in bringing around $625 million in remittance during the April-June quarter of 2021 but its remittance earnings declined by 41.38% to $366 million this time.
Another great performer, Sonali Bank, also witnessed a 26% fall.
Although many private commercial banks witnessed a jump in remittance earnings, some posted negative growth but the overall remittance earnings are rising.
The central bank data shows that remittances to private banks have been on the rise for the past few years.
They brought $4,694 million or 81.87% of the total remittance during this June quarter, registering a 1.57% year-on-year growth.
Bankers said, remittance income used to come through state-run Agrani Bank even a few years ago. Since the central bank introduced the Bangladesh Electronic Funds Transfer Network (BEFTN), the contributions of private banks to bringing expatriate income home have been on the rise.
Association of Bankers Bangladesh (ABB) Chairman Selim RF Hussain said that the services of private banks are better than most state-owned banks.
Besides, many private banks including Islami Bank and Bank Asia have extensive networks of branches across the country. Remittance recipients can easily withdraw money from the branches.
The country received $1008.67 million in remittances through the banking channel in the first 15 days of September.
According to the latest data, the expatriates have sent $848.28 million in remittances through private commercial banks.
On the other hand, state-owned commercial banks received only $140.54 million while one state-owned specialized bank, Bangladesh Krishi Bank received $16.42 million.
Expatriates have sent $3.43 million through foreign commercial banks.
This data was revealed in the latest report of Bangladesh Bank on Monday (September 19) regarding remittances.
In August, the country received $2.03 billion in remittances.