Bangladesh’s sub-branch banking network continued expanding in the April-June quarter of 2026, attracting deposits faster than the overall banking sector but failing to maintain lending momentum, according to Bangladesh Bank.
Deposits collected through sub-branches increased to Tk84,263 crore at the end of June from Tk79,717 crore in March, registering 5.7 per cent quarterly growth. The increase was higher than the 2.4 per cent growth in total deposits of the banking sector during the period.
In contrast, loans and advances through sub-branches declined to Tk20,602 crore from Tk22,309 crore, falling 7.7 per cent. The decline came despite a 1.4 per cent rise in overall banking sector loans and advances.
As a result, the contribution of sub-branches to total banking activity remained stronger on the deposit side. Their share of total banking sector deposits increased slightly to 3.8 per cent from 3.7 per cent, while their share of total loans declined to 1.1 per cent from 1.3 per cent.
The expansion of the network also increased access to formal banking. The number of sub-branches rose to 5,033 in June from 4,992 in March, with banks opening 30 rural and 19 urban outlets during the quarter. Eight sub-branches were closed or merged with other branches or sub-branches.
Deposit account growth also remained strong. The number of accounts increased to 8.97 million in June from 8.47 million in March, a 5.9 per cent rise.
Women’s participation in account ownership improved slightly, with women accounting for 38.4 per cent of sub-branch deposit accounts compared with 38.2 per cent three months earlier. However, their share of total sub-branch deposits declined marginally to 25.9 per cent from 26.2 per cent.
Credit access through sub-branches weakened during the quarter. The number of loan accounts declined to 240,010 from 253,512, a 5.3 per cent fall.
Women accounted for 18.9 per cent of sub-branch loan accounts, up from 18.3 per cent, while their share of total sub-branch loans increased to 14.7 per cent from 14 per cent.
Rural areas continued to account for nearly half of the sub-branch network. The share of rural sub-branches increased slightly to 49.5 per cent in June from 49.4 per cent in March.
Rural customers accounted for 33.9 per cent of sub-branch deposits, up from 32.8 per cent, while their share of sub-branch loans increased to 35.8 per cent from 31.8 per cent.
Private banks dominated the sub-branch network.
IFIC Bank operated the highest number of outlets with 1,224, followed by NRB Commercial Bank with 688, Dutch-Bangla Bank with 350, Pubali Bank with 281 and Islami Bank Bangladesh with 271 sub-branches.
Social Islami Bank operated 238 sub-branches, United Commercial Bank 196, First Security Islami Bank 178, Global Islami Bank 154 and BRAC Bank 117.
District-wise, Dhaka had the largest number of sub-branches with 1,007 outlets, followed by Chattogram with 470, Cumilla with 218, Narayanganj with 170 and Gazipur with 168.
Banks’ sub-branches are smaller banking outlets established to extend formal banking services to customers, particularly in areas where setting up full-scale branches may not be feasible.
They operate under the licence and supervision of a parent bank and provide services such as opening deposit accounts, collecting deposits, disbursing loans, remittance services and other basic banking facilities.
Bangladesh Bank initially allowed banking booths in 2018, later recognising them as sub-branches in 2019 and issuing operational guidelines in 2023.
Unlike agent banking outlets, sub-branches are directly operated by banks and form part of their official branch network.
