Islami Bank Bangladesh PLC has sought Tk10,000 crore liquidity support from Bangladesh Bank as the bank's current account has decreased significantly.
A senior official of the bank confirmed the matter and said that the bank's liquidity has come under pressure due to large deposits withdrawn by customers in recent times, as it failed to maintain its cash reserve ratio (CRR)
As a result, it is not possible to maintain the specified limit or CRR of cash reserved in Bangladesh Bank.
"Our principal account with Bangladesh Bank is still in a positive position. However, a CRR deficit has been created. There is a specific limit to maintain CRR in the principal account. Currently, the deficit has arisen as it has fallen below that limit."
According to bank sources, Islami Bank's principal account in Bangladesh Bank earlier had about Tk7,150 crore. Currently, it has come down to about Tk2,600 crore. To deal with this situation, liquidity assistance of Tk10,000 crore has been sought from the central bank.
Those concerned say that the recent unrest surrounding the change in the chairmanship of the bank has created concern among customers. It is reported that deposits worth about Tk4,000 crore have already been withdrawn from the bank.
Earlier, during the ousted Awami League government, Islami Bank faced a liquidity crisis due to the distribution of huge loans in the name and name of S Alam Group. At that time, the bank fell into a CRR deficit and failed to maintain the required amount in the current account of Bangladesh Bank.
However, during the interim government, the bank gradually started overcoming the crisis. Within a few months, it came out of the CRR deficit and was able to deposit sufficient money in the current account of the central bank.
But after the new government took office, uncertainty again surrounded the bank. On May 24, Islami Bank chairman Prof M Zubaidur Rahman resigned on the advice of Bangladesh Bank.
On the same night, former deputy governor of Bangladesh Bank Khurshid Alam was appointed as the chairman of the bank.
Since then, a group of customers and shareholders have been protesting under various banners against his appointment. They held a protest program in front of the Islami Bank Tower in the capital for the ninth consecutive day on Tuesday.
