School banking is gradually getting a huge response among students across the country as deposits with the banking accounts crossed Tk 1,200 crore at the end of September 2017.

The central bank's latest quarterly report on financial inclusion shows that a total of Tk 1,254.23 crore was deposited with 1,387,617 school banking accounts at 56 scheduled banks as of September 30 this year.

During the July-September period, the deposit amount and accounts have increased 22.87 percent and 10.36 percent respectively compared to the same period of the previous year.

During July-September of 2016, deposits with the school banking accounts were Tk 982.59 crore and accounts were 1,255,026.

According to the report, the school banking service is more popular in cities than in rural areas as 843,607 school banking accounts were opened in cities against 544,010 accounts in rural areas.

The banking is also more popular among the male students than female students as 815,434 school banking accounts were opened by male students against 572,183 by female students.

"Bangladesh Bank launched the programme in November 2010 for school students to help them save up for the future, learn financial literacy at an early age and build the habit of saving," a BB official told the news agency yesterday.

Dutch-Bangla Bank, Islami Bank Bangladesh, Eastern Bank, United Commercial Bank and Rupali Bank are the five lenders that pulled most of the deposits from the students.

Islami Bank opened 231,883 accounts, which is 16.71 percent of the total accounts, while Dutch-Bangla Bank ranked first by collecting deposits of Tk 397.60 crore with school banking accounts.

"As per an instruction of the central bank, Islami Bank introduced school banking, so that the future generation can gain knowledge on the financial system," said Deputy Managing Director of Islami Bank Abu Reza Mohd Yeahia.