Islami Bank seeks Tk 10,000cr support from BB

Islami Bank Bangladesh PLC, one of the largest private commercial banks, has hit a severe liquidity crisis, forcing it to seek Tk 10,000 crore in emergency liquidity support from the central bank.

Amid agitation on the 7th day for resignation of Chairman Khursid Alam and mass withdrawal of cash, the bank requested the assistance after failing to maintain its required Cash Reserve Ratio (CRR) due to a significant drop in its current account balance at Bangladesh Bank.

A top official of Islami Bank confirmed the development, stating that the bank’s liquidity came under massive pressure following recent large-scale deposit withdrawals by panic-stricken clients.

The increased cash outflow has created pressure on the bank’s liquidity position and raised concerns over its ability to comfortably maintain the statutory Cash Reserve Requirement (CRR), officials added.

The bank reportedly held more than Tk 7,015 crore in its current account with the central bank a few days earlier, which has now fallen to around Tk 2,600 crore due to sustained withdrawal pressure.

Officials said the requested liquidity support is intended as a precautionary measure to ensure uninterrupted customer services and financial stability.