BB lends Tk2,500cr to Islami Bank to ease liquidity crisis

Bangladesh Bank has provided a special liquidity support of Tk2,500 crore to Islami Bank Bangladesh PLC in an effort to ease the bank’s ongoing cash shortage and restore normal banking operations.

The central bank made the decision on Sunday morning and credited the funds to Islami Bank’s current account maintained with Bangladesh Bank, according to sources at both institutions.

The injection of funds has enabled the bank to resume cheque clearing operations, which had been disrupted amid mounting liquidity pressures.

A senior official of Islami Bank said the bank has been facing an unusually high demand for cash withdrawals, while fresh deposits have remained scarce.

“Almost everyone is trying to withdraw money, and deposits are negligible. If this situation continues, there may be no alternative but to keep some branches closed,” the official said, requesting anonymity.

He added that swift measures are needed to restore customer confidence and stabilise the situation.

According to BB spokesperson, a delegation from Islami Bank hold a meeting with the governor at the central bank's head office to brief him on the bank's current situation.

The delegation comprises Islami Bank's managing director (current charge), two additional managing directors, and six deputy managing directors.

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On 24 May, the last working day before Eid-ul-Azha, the then chairman M Zubaidur Rahman resigned from his position. Later that night, former Bangladesh Bank deputy governor Md Khurshid Alam was appointed as an independent director and the new chairman of the bank.

Since then, a group operating under the banner of the Islami Bank Customer Awareness Forum has been staging demonstrations and demanding the removal of the chairman, along with the implementation of a seven-point reform agenda.