Credit card use up 17% in March

Transactions with credit cards rose 17 percent in March compared to the preceding month thanks to higher purchasing tendency among consumers. Bangladesh Bank data showed that transactions through credit cards increased to Tk 3,490 crore in March. Of the amount, Tk 2,985 crore was spent within the country while the remaining was spent abroad. On the other hand, credit card transactions within Bangladesh by foreign nationals declined 6 percent to Tk 226 crore. Within Bangladesh, credit card transactions at departmental stores increased to Tk 1,381 crore in March. In addition, the clothing category experienced a substantial increase from Tk 150 crore in February to Tk 344 crore in March due to the Eid-ul-Fitr festival, according to a monthly report regarding credit card transactions. Analysing cross-border transactions, it was seen that the majority of credit card transactions occurred in India, which accounted for approximately 21 percent of foreign transactions.

Source: https://www.thedailystar.net/business/economy/news/credit-card-use-17-march-3609146

Deposit growth falls to 10% in March – lowest in five months

Bangladesh’s banking sector witnessed a five-month-low deposit growth in March this year registering below 10% compared to the same month of the previous year, while people’s in-hand cash rose. According to data from the central bank, total deposits reached a staggering Tk16.75 lakh crore in March, reflecting a year-on-year growth of 9.99%. Of this, time deposits have witnessed a growth of 10.37% and demand deposits 7.64%. The overall deposit growth was 10.43% in February. Deposit growth surpassed 10% for three consecutive months, reaching a 28-month high of 11.04% in December 2023 – a significant improvement compared to the slowdown observed in September 2021, when the growth rate dipped due to the global pandemic’s economic impact. All banks, regardless of financial health, have raised deposit interest rates. While established banks typically offer rates between 9% and 10%, some struggling banks are resorting to much higher rates, reaching up to 12%, to attract deposits. This overall increase in deposit rates, partly driven by the central bank’s policy rate hike of 8.5%, is contributing to the observed growth in deposits across the banking sector.

Source: https://www.tbsnews.net/economy/banking/deposit-growth-falls-10-march-lowest-five-months-849631

Double-digit inflation hits food, health – strains household budgets

Food inflation soared to a five-month high of 10.22% in April while inflation in the health sector surged to 13.69%, according to data released by the Bangladesh Bureau of Statistics on 13 May. Food price inflation was at 10.76% earlier in November last year. It decreased to single digit the following month, and by March, the rate stood at 9.87%. The health sector saw a substantial increase in April from 2.16% in March. Notably, rural health inflation far surpassed urban rates, hitting 17.04% in April compared to just 1.31% in March. Urban health inflation rose to 7.14% from 4.37% in March. Non-food inflation, on the other hand, stood at 9.64% in March and slightly dipped to 9.34% in April.

Source: https://www.tbsnews.net/economy/food-inflation-surges-1022-april-highest-five-months-849976

Grameenphone partners with bKash

Grameenphone, the country’s smart connectivity provider, has partnered with bKash, the largest Mobile Financial Service (MFS) provider, for enabling its customers to seamlessly open bKash accounts directly within the MyGP app. This seamless account opening functionality integrated within the MyGP app, setting a new standard for accessibility and ease-of-use. This pioneering initiative marks the first of its kind in Bangladesh, solidifying Grameenphone and bKash as major forces driving innovation in their respective industries. This collaboration has enabled bKash customer registration process within the MyGP app by simply clicking on the dedicated section. Upon consent and few verifications, customers are swiftly transitioned to the bKash registration platform, where users can proceed to fulfill the eKYC (electronic Know Your Customer) process and follow the required steps.

Source: https://today.thefinancialexpress.com.bd/trade-market/grameenphone-partners-with-bkash-1715622285