Islami Bank has sought liquidity support ( liquidity support) of Rs 10 thousand crore from Bangladesh Bank amid ongoing controversy over the appointment of the chairman and pressure to withdraw deposits of customers.
A top-level official of the bank said that due to the recent unrest, customers have withdrawn deposits of around Rs 4,000 crore. This has put pressure on the bank’s cash liquidity and a cash deposit saving rate (CRR) deficit.
“Our principal account with Bangladesh Bank is still in a positive state. However, the shortfall has been created as the CRR has fallen below the prescribed limit. That is why we have sought liquidity assistance of ten thousand crore rupees.”
According to bank sources, about seven thousand rupees was deposited in the principal account of Islami Bank in the central bank. At present, it has come down to about Rs 2,600 crore.
Earlier, during the tenure of the ousted Awami League government, the bank faced liquidity crisis due to the disbursement of huge loans in the name of S Alam Group. Later, during the interim government’s reconstruction initiative, the bank was able to gradually overcome the CRR deficit and regained the central bank’s ability to deposit money as the current.
However, after the new government took office, there was unrest in the bank again. Professor M Zubaidur Rahman, chairman of the bank, resigned on the advice of Bangladesh Bank on 24 May. On the same night, former deputy governor Khurshid Alam was appointed as the chairman of the bank.
Since his appointment, a group of customers and shareholders have started a movement on various banners. They are working on a series of measures to change the president. Protests and sit-ins were held in front of Islami Bank Tower for the ninth consecutive day on Tuesday.
Meanwhile, an official of Bangladesh Bank said that Islami Bank has received a request for liquidity assistance. However, no final decision has been taken yet.