National Bank Ltd, suffering from a liquidity crisis, has sought an additional Tk 10 billion from Bangladesh Bank in liquidity support.
The bank earlier received Tk 40 billion from the central bank.
"Bangladesh Bank had told us they would give Tk 50 to 60 billion. However, they gave us Tk 40 billion. Hence we are seeking Tk 10 billion more," National Bank Chairman Abdul Awal Mintu said.
"This amount is needed to pay the bank clients."
The central bank asked for details on how and in which sectors the previous amount had been spent and National Bank has been preparing a presentation to explain it, said Mintu.
He complained that the National Bank has been suffering due to the "corruption" of its old board. The new authorities have taken on fresh initiatives to save the bank, he said. As part of these initiatives, they seek Tk 10 billion more from the central bank.
The bank, which had been under the control of business house Sikder Group for the last decade and a half, applied for liquidity support with 10 percent interest this time. However, Bangladesh Bank has yet to approve the new amount, the chairman said.
In November, Bangladesh Bank provided liquidity support of Tk 220 billion to several banks. It printed the currency to provide the support.
In addition to National Bank, First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank and Exim Bank received the support.
After taking office, Bangladesh Bank Governor Ahsan H Mansur had initially said the central bank would not print money indiscriminately to stabilise the banks. However, he had to backtrack on that announcement. —bdnews24.com
