Despite the economic crisis and instability in the banking sector, several private commercial banks in Bangladesh have maintained the highest credit ratings. They are also expanding their deposit bases and business operations. The list includes both first-generation banks and lenders that began operations in the early 21st century. Eight private banks now have deposits of more than BDT 500 billion alongside the highest credit ratings. Of these, six have an ‘AAA’ rating (triple-A), and two have an ‘AA’ rating (double-A).
The banks with ‘AAA’ ratings are BRAC Bank, City Bank, Pubali Bank, Dutch-Bangla Bank, Eastern Bank and Prime Bank, while Trust Bank and Bank Asia are on the list with ‘AA’ ratings. The banks use these high ratings, which recognise their financial strength and debt repayment capacity, as a key way to earn depositors’ confidence.
Under the international credit rating classification system, ‘AAA’ is the highest rating, while ‘AA’ is the second-highest. Receiving either of these ratings from a reputable credit rating agency indicates that an institution has an exceptionally strong capacity to meet its financial obligations. Such institutions are considered to have high credit quality and face relatively low credit risk.
A bank’s credit rating is determined by assessing various indicators, including capital adequacy, asset quality, liquidity, earnings and profitability, management efficiency, corporate governance and risk management capacity. Internationally, investors consider credit ratings alongside these indicators before investing in an institution’s shares or debt securities. Similarly, when depositing money with a bank, its credit rating indicates its financial strength and ability to meet its obligations.
But bank executives said credit ratings had not traditionally been given much importance when choosing where to deposit money in Bangladesh’s banking sector. According to them, depositors used to put their savings in banks without assessing their financial strength, corporate governance or credit ratings. But the banking sector crisis and the collapse of several banks after the 2024 mass uprising have changed this mindset. Credit ratings, corporate governance, management transparency and a bank’s overall reputation are now becoming important considerations when deciding where to deposit money.
According to bank executives, the banks that disbursed loans amid irregularities, corruption and weak governance in the past are now facing the most severe difficulties. By contrast, banks that have complied with regulations, exercised caution in risk management and ensured good governance have been able to attract deposits and expand their businesses despite the adverse circumstances.
BRAC Bank is among the banks that have maintained a steady growth trajectory over the past few years. At the end of September, its total assets and liabilities stood at BDT 1.52 trillion. In the first nine months of this year (January–September) alone, its deposits increased by BDT 153.11 billion. The bank’s outstanding loans stood at BDT 779.88 billion. Despite various economic challenges and turmoil in the banking sector, BRAC Bank has managed to keep its non-performing loan (NPL) ratio below 2 percent, while the average NPL ratio across the country’s banking sector is now around 33 percent.
BRAC Bank has received the highest long-term credit rating of ‘AAA’ from the Credit Rating Agency of Bangladesh (CRAB), a domestic credit rating agency. Its short-term rating is ‘ST-1’. BRAC Bank Managing Director Tareq Refat Ullah Khan told Bonik Barta, “BRAC Bank is at the peak of its success at a time when the country’s banking sector is reeling under the burden of non-performing loans. The national economy is also grappling with various challenges. Our bank is now reaping the benefits of the brand value, strong reputation and trust it has built over the past two and a half decades.”
Describing banks as institutions built on trust and confidence, he said: “This can’t be achieved overnight. It requires years of hard work and dedication. Since its inception, BRAC Bank’s board and management have worked towards this goal. We’re now reaping the rewards of those efforts. There’s nothing unusual about our growth. BRAC Bank’s deposits exceeded BDT 1.14 trillion at the end of September. This is the benefit of a strong reputation, effective branding and the highest credit rating.”
Like BRAC Bank, City Bank, Dutch-Bangla Bank, Eastern Bank and Prime Bank have also received the highest ratings of ‘AAA’ and ‘ST-1’ from CRAB. Trust Bank has received an ‘AA1’ rating. Each of these five private commercial banks now has deposits exceeding BDT 500 billion. At the end of September, City Bank’s deposits stood at BDT 774.04 billion, while Dutch-Bangla Bank and Eastern Bank held deposits of BDT 732.82 billion and BDT 630.30 billion, respectively. Trust Bank’s deposits reached BDT 581 billion.
Ahsan Zaman Chowdhury, managing director of Trust Bank, a private commercial bank established by the Army Welfare Trust under the control of the Bangladesh Army, told Bonik Barta, “In the past, customers didn’t check credit ratings when deciding where to deposit their money. But they’re doing so now because customers have been deceived and suffered losses after depositing money with some banks. We’re now reaping the rewards of adhering to corporate governance and maintaining a strong reputation. Trust Bank’s deposits increased by nearly BDT 70 billion in the first nine months of this year alone.”
Prime Bank, which holds an ‘AAA’ credit rating, also reached the BDT 500 billion deposit mark this October. At the end of December last year, the bank’s deposits stood at BDT 443.43 billion.
M Nazeem A Choudhury, additional managing director of the private commercial bank, told Bonik Barta, “All of Prime Bank’s indicators are stable and sustainable. We attach the highest importance to adhering to corporate governance standards. Our bank also enjoys a strong market reputation. Prime Bank could have crossed the BDT 500 billion deposit threshold much earlier had it wanted to. But we give greater priority to sustainable and quality growth.”
Pubali Bank PLC has received the highest credit rating of ‘AAA’ from Credit Rating Information and Services Limited (CRISL). The bank, which was transferred from the public to the private sector, now has deposits of more than BDT 1.08 trillion. Once regarded as a troubled institution a decade ago, it is now one of the country’s leading banks. At the end of December last year, Pubali Bank’s deposits stood at BDT 894.84 billion, meaning its deposits increased by more than BDT 190 billion in just nine months.
The same credit rating agency has given Bank Asia an ‘AA+’ (double-A plus) rating. At the end of September this year, the bank’s deposits stood at BDT 533.07 billion.