Between December 31 and March 29, overall deposit in commercial banks grew by 1.08 percent while credit grew by 0.19 percent. Usually, the first quarter deposit and credit growth rates hover around six to eight percent.

Former central bank deputy governor Khandakar Ibrahim Khaled said, several investors include their 'black money' as part of their equities when they apply for loans.

However, in fear of coming under the government's ongoing crackdown on corruption, these investors are reluctant to include their 'black-money' as a portion of their equities and are refraining from applying for loans as they would not meet the equity standards.

Another top executive of a private bank said many businessmen who used the clouts of politicians to gain businesses and who were involved in corruption are at the moment trying to avoid getting caught in the anti-corruption dragnet, and as such, they are more interested in covering up past footprints rather than investing in new ventures.

Admitting to low credit and deposit growths, the high level executive said, "Yes, we [banks] are going through a rough patch right now, but this situation is temporary, and ultimately it'll benefit the country and its poor to have a corruption-free system."

The Bangladesh Bank data for the calendar year's first quarter show deposits in four nationalised commercial banks dropped by 1.69 percent while their credits fell by 1.48 percent.

Although overall deposit in the thirty private commercial banks (PCBs) went up by 3.86 percent and overall credit up by 1.49 percent, many PCBs face a grim future as credits in those fell in the first quarter, with only a handful of them pulling up the numbers.

Meanwhile, overall deposit in nine foreign commercial banks (FCBs) rose by 1.75 percent, while overall credit went up 0.29 percent, but credits in a number of FCBs went down.

In the five specialised banks, deposits increased by 0.5 percent, while credits dropped by 0.98 percent.

Khaled, also former managing director of a number of banks, told The Daily Star that a number of people, who are not necessarily corrupt but had evaded taxes, withdrew large chunks of money from their bank accounts as the joint forces and the National Board of Revenue (NBR) have been checking bank accounts as part of the anti-corruption crackdown, contributing to the trend of low deposit growth.

An NCB high official said there is a state of fear and lack of confidence among the investors since the start of the state's crackdown on corruption.

He said the banks have also been affected by withdrawals from recently matured deposit pension schemes.