BB extends Tk 1,000cr liquidity support to National Bank

Bangladesh Bank (BB) has provided Tk1,000 crore in emergency liquidity support to National Bank PLC amid rising cash withdrawal demands ahead of Eid-ul-Fitr.

A central bank source confirmed the information on Thursday, adding that the support was extended for a period of 90 days at an interest rate of 11.5 percent.

A senior BB official said that National Bank has been facing a liquidity crunch, struggling to return deposits to customers on time. 

The bank had formally requested support from the central bank due to its fund shortage, prompting BB to extend the assistance.

A senior official from National Bank noted that the support was necessary to maintain smooth cash flow, especially as withdrawals typically surge before Eid. 

He added that the current level of deposits and loan recoveries was insufficient to cover the liquidity gap, making the central bank’s assistance crucial.

SH