When Bangladesh’s banking sector entered a period of extraordinary scrutiny following the political transition of August 2024, confidence became the industry’s most valuable currency.
Depositors began reassessing where to keep their money. Regulators tightened oversight. Weaknesses that had remained hidden for years surfaced at several institutions. Liquidity, governance and asset quality suddenly became matters of public discussion rather than technical banking metrics.
For many banks, the period became a test of resilience. For Dhaka Bank, it became a validation of a model built over three decades.
Unlike some institutions that faced questions over governance, liquidity or asset quality, Dhaka Bank moved through the transition without operational disruption.
The stricter regulatory environment did not uncover hidden vulnerabilities. Instead, the bank emerged with stronger deposits, improved asset quality, higher profitability and a significantly larger balance sheet.
The experience offers a case study in how strong governance can translate into business growth when trust becomes scarce.
“Trust is not built overnight,” Dhaka Bank Additional Managing Director A K M Shahnawaj told TIMES of Bangladesh.
“The confidence we received from customers during this period was the outcome of years of disciplined banking, strong governance, prudent risk management and a relentless focus on customers.”
That confidence is visible in the numbers. Customer deposits rose to Tk33,884 crore at the end of 2025 from Tk29,953 crore in 2024 and Tk28,208 crore in 2023.
The increase of nearly Tk 5,676 crore over two years came during the most challenging period for the country’s banking industry.
The growth was not concentrated in any single segment. Corporate deposits increased from Tk14,232 crore in 2023 to Tk16,065 crore in 2025. Retail deposits grew even faster, climbing from Tk13,358 crore to Tk17,278 crore over the same period.
Retail deposit growth is often regarded as the purest measure of public confidence because individual customers tend to react quickly to concerns over financial stability.
“We never faced a confidence crisis,” Shahnawaj said. “Customers continued to transact, save and invest with us because they knew the bank remained fundamentally strong.”
The strength of that franchise rests on foundations laid long before the recent transition. Founded in 1995, Dhaka Bank built its business around customer-centric banking, diversified revenue streams and disciplined risk management.
Its operations span corporate banking, SME banking, agriculture, consumer finance and Islamic banking, supported by specialised functions including compliance, internal audit, risk management and research.
The bank’s emphasis on governance and internal controls remained particularly important for long. While several institutions struggled with legacy issues, Dhaka Bank’s financial indicators continued to strengthen.
Total assets expanded from Tk37,864 crore in 2023 to Tk43,146 crore in 2024 and Tk44,521 crore in 2025. Loans and advances increased from Tk25,619 crore to Tk27,612 crore during the same period.
Investments more than doubled, rising from Tk5,089 crore to Tk11,697 crore. The bank simultaneously strengthened its liquidity position.
Its statutory liquidity ratio improved from 17.86 per cent in 2023 to 24.80 per cent in 2024 and 29.42 per cent in 2025. Cash and cash equivalents remained above Tk2,700 crore.
Dhaka Bank also adopted a more conservative funding profile. Deposits grew faster than lending, causing the credit-deposit ratio to decline from 85.98 per cent in 2023 to 76.86 per cent in 2025.
The quality of assets improved as well. Non-performing loans declined from Tk1,434 crore in 2024 to Tk1,040 crore in 2025. Consequently, the non-performing loan ratio fell to 3.77 per cent from 5.33 per cent a year earlier.
The bank also strengthened provisions against potential losses, reinforcing protection against future credit risks.
Profitability improved alongside balance-sheet strength.
Operating profit rose to Tk1,175 crore in 2025 from Tk1,061 crore in 2024. Net profit more than doubled to Tk269 crore from Tk125 crore.
Net interest margin improved from 3.59 per cent in 2023 to 3.99 per cent in 2025. Investment income also more than doubled to Tk893 crore from Tk418 crore.
The stronger earnings translated into better returns for shareholders. Return on assets rose from 0.48 per cent in 2023 to 0.61 per cent in 2025, while return on equity climbed from 8.14 per cent to 11.62 per cent.
Capital strength remained another differentiator. Dhaka Bank has operated under the Basel III framework since 2015 and continued strengthening its capital base through subordinated bonds and prudent capital management.
By the end of 2025, its capital adequacy ratio stood at 13.39 per cent, exceeding Bangladesh Bank’s minimum requirement of 12.50 per cent.
Regulatory capital reached Tk3,887 crore. Shahnawaj said the bank’s approach extends beyond meeting regulatory requirements.
The institution increasingly incorporates economic capital principles into decision-making, assessing potential unexpected losses from credit, market and operational risks in order to protect stakeholders and strengthen long-term resilience.
That emphasis on sustainability is also reflected in the bank’s broader strategy. Dhaka Bank has integrated environmental and social considerations into its operations through dedicated green banking initiatives, financing programmes and sustainability policies.
The bank maintains a Green Banking Cell responsible for developing environmentally responsible financing and operational practices.
The institution has also maintained a longstanding commitment to corporate social responsibility, supporting initiatives in education, healthcare, disaster management, sports and other areas of national importance.
Financial inclusion remains another pillar of its strategy. With more than 15.5 lakh deposit accounts, Dhaka Bank has steadily expanded access to formal financial services across different segments of society, including farmers,
SME entrepreneurs, women entrepreneurs and first-time banking customers. Technology has become a key enabler of that effort.
The bank now operates 118 branches, including Islamic banking branches, 37 sub-branches, three SME service centres, two offshore banking units, 75 ATMs, five automated deposit machines and 45 cash recycling machines.
Real-time online banking, digital channels and automation initiatives have become central to its customer-service model.
For Shahnawaj, however, the story ultimately comes back to trust. “Our objective has never been growth at any cost,” he said. “We focus on building a strong institution that customers, regulators, investors and shareholders can trust.”
The post-August regulatory reset effectively became a stress test for Bangladesh’s banking industry. While weaknesses surfaced at several institutions, Dhaka Bank’s governance framework, liquidity position, capital strength and asset quality remained intact.
In the process, the bank demonstrated a lesson increasingly relevant across the financial sector—when confidence becomes scarce, institutions that have spent years building trust often emerge stronger than before.
