The Financial Express

Male students drive school banking deposit growth

| Updated: October 25, 2017 03:38:25

Internet Photo used only for representation. Internet Photo used only for representation.

Deposits with the commercial banks' school banking accounts have marked an increase by 28.20 per cent at the end of June 2017 compared to the corresponding period of the preceding year, reports BSS.

The central bank's latest quarterly report on financial inclusion shows that a total of Taka 11.28 billion was deposited with 13,34,343 school banking accounts at 56 scheduled banks upto June 30 this year while it was Taka 8.80 billion with 11,82,179 school banking accounts upto June 30 in the previous year.

According to the report, school banking service is more popular in cities than in the rural areas as 8,12,423 school banking accounts were opened in the cities against 5,21,915 accounts in the rural areas.

The banking scheme is also more popular among the male students than the female ones as 7,71,138 school banking accounts were opened by male students against 5,53,200 accounts by their female counterparts.

"Bangladesh Bank launched the programme in November 2010 aimed at the school students to help them save money for the future, learn financial literacy at an early age and encourage the habit of savings in the students," a BB official told the news agency on Monday.

The BB data shows that deposit with the school children's accounts at the state-owned banks increased to Taka 1.59 billion or 14.14 per cent on June 30 this year from Taka 948.9 million in the previous year.

The figure rose to Taka 9.36 billion from Taka 7.58 billion in the private commercial banks, to Taka 97.7 million from Taka 74 million in the foreign commercial banks, and to Taka 231.6 million from Taka 196.1 million in the specialised banks.

The Dutch-Bangla Bank, Islami Bank Bangladesh, Eastern Bank, United Commercial Bank and Rupali Bank are the five institutions that managed to garner most of the deposits from the students.

Islami Bank Bangladesh Limited (IBBL) opened 2,22,915 accounts, which is 16.70 per cent of the total accounts while Dutch-Bangla Bank was ranked the top for collecting deposits amounting to Taka 3.59 billion with the school banking accounts.

"As per direction of the central bank, the IBBL introduced the school banking so that the future generation can learn about the financial system," said IBBL Deputy Managing Director Abu Reza Mohd. Yeahia.

Share if you like