The number of bank accounts holding deposits exceeding one crore taka decreased significantly by 1,657 in the September quarter, with a corresponding drop in deposits amounting to 26,187 crore taka, according to a report by the central bank. This decline follows the political transition in August, which has had notable effects on the banking sector.

The central bank's data reveals that as of September's end, the total number of accounts with deposits exceeding one crore stood at 117,000, down from 119,000 in June. Notably, in the June quarter, the number of millionaire accounts had risen by nearly 3,000 compared to the March quarter, which recorded 116,000 such accounts.

The report further indicates that the total deposits in these accounts were 773,000 crore taka at the end of June, which declined to 747,000 crore taka by the end of September.

When asked about the reasons behind this decline, Syed Mahmudur Rahman, Managing Director and CEO of Mutual Trust Bank, stated that many account holders withdrew funds following the power transition in August. He cited political uncertainty, rising inflation, and increased household and business expenses as key factors contributing to the drop in both individual and institutional millionaire accounts.

Rahman also pointed to a lack of confidence in the banking sector as another significant reason for the decline. "Over the past few months, customers have shown reduced trust in the banking sector, and we are working to restore it," he said. Additionally, higher returns on government treasury bills and bonds have prompted many large depositors to shift their funds from bank accounts to these alternatives, further contributing to the reduction in millionaire accounts.

The central bank's sectoral analysis also shows a decline in both individual and corporate accounts holding more than one crore taka. Between July and September, the number of individual millionaire accounts decreased by 620, with deposits dropping by 8,923 crore taka. By the end of September, the total number of such accounts stood at 33,861, compared to 34,481 at the end of June. Deposits in these accounts fell from 92,308 crore taka in June to 83,385 crore taka in September.

Bankers also reported that rumors about the closure of certain banks, particularly Shariah-based Islamic banks, led to a significant withdrawal of deposits by customers. This period also saw prominent business entities withdrawing their funds from banks, exacerbating the decline.

The central bank report suggests that the political shift in August triggered reforms across various sectors, including banking. However, these changes, coupled with inflationary pressures and shifts in investment preferences, have had an immediate and measurable impact on high-value deposit accounts in the banking sector.