Bangladesh’s central bank granted formal approval for National Credit and Commerce Bank (NCC Bank) to convert 20 conventional branches into fully Shariah compliant outlets, as the country's Islamic banking sector continues expanding amid growing depositor demand for profit-and-loss sharing products, The Daily Star reported.

Total deposits within Bangladesh's Islamic banking sector reached BDT467bn ($3.84bn) in June 2026, up 3.31% y/y, while Islamic financial allocations climbed 7.37% y/y to BDT612bn over the same period, reflecting sustained momentum in the segment relative to conventional banking.

NCC Bank confirmed it would comply with all central bank guidelines governing the branch conversion process. The bank reported net profit of BDT1.16bn for the second quarter of 2026, up 5% y/y, attributing the gain to higher investment yields across its portfolio.

As of July 31, 2026, NCC Bank's ownership structure showed sponsors and directors holding 42.10% of total shares, institutional investors controlling 21.35%, with the remaining equity split between individual retail investors and foreign shareholders.

The branch conversion adds NCC Bank to a growing list of Bangladeshi lenders expanding their Islamic banking footprint, as the sector's faster growth relative to conventional deposits and lending suggests continued structural shift in depositor preferences.

With Bangladesh Bank's approval now secured, NCC Bank's transition is likely to strengthen its competitive positioning within the country's increasingly contested Islamic finance segment over the coming quarters.