BB injects Tk 2,500cr into Islami Bank amid cash crunch

Bangladesh Bank has provided Tk 2,500 crore in liquidity support to Islami Bank Bangladesh PLC to help the country's largest private commercial bank cope with a severe cash shortage triggered by a massive withdrawal of deposits.

The central bank's spokesperson and Executive Director Arif Hossain Khan confirmed the assistance on Sunday. Of the total amount, Tk 2,000 crore was provided in cash, while another Tk 500 crore was allocated to maintain smooth operations of the Real Time Gross Settlement (RTGS) system.

The liquidity crisis emerged following widespread customer withdrawals amid growing concerns over recent changes in the bank's leadership, particularly the appointment of former Bangladesh Bank Deputy Governor Mohammad Khurshid Alam as chairman. Bank sources said customers withdrew nearly Tk 5,000 crore within a week, putting significant pressure on the bank's liquidity position.

Facing difficulties in meeting withdrawal demands, Islami Bank reportedly sought Tk 10,000 crore in special liquidity support from the central bank, of which Tk 2,500 crore has been released initially.

TZ