Dhaka and Chattogram divisions account for more than 80 per cent of the total deposits in the banking system thanks to a large flow of savings from state-run enterprises and higher economic activity.

Data from the Bangladesh Bank showed that deposits in the scheduled banks in the Dhaka division totalled Tk 9,67,870 crore as of September, representing 61 per cent of the total deposits of Tk 15,76,367 crore in the banking industry.

The amount of deposits was Tk 3,30,273 crore in the Chattogram division, constituting 21 per cent of the deposit base.

Khulna, Rajshahi, Sylhet, Rangpur, Barishal and Mymensingh followed Dhaka and Chattogram, according to the central bank's quarterly statistics of scheduled banks for July-September.

Md Abdus Salam Azad, managing director of state-run Janata Bank, attributed the savings made by government organisations in the capital to the higher concentration of deposits in Dhaka.

In the port city, banks receive savings from state-owned Bangladesh Petroleum Corporation and the Chattogram Port Authority, he said adding that institutional deposits would be around 70 per cent of the total amount in the two divisions.

"Individuals and private firms account for the rest of the deposits in these divisions. Besides, the two regions have higher economic activities than other divisions."

The concentration of bank branches is high in the two divisions because of higher economic activities.

"The extent of money circulation is very high here," said Emranul Huq, managing director of Dhaka Bank Ltd.

The ratio of loan concentration in the two cities would be nearly 65-70 per cent of the entire loans in the banking sector, he added.

"Such a heavy concentration is not good. This does not help equitable development."

Huq expected that share of Dhaka and Chattogram in deposits and loans would reduce in the coming days because of the setting up of economic zones across the country and the expansion of economic activities beyond the two regions.