Amid the controversy surrounding the appointment of the chairman, customer concerns and lack of confidence, deposits are being withdrawn at a massive rate from Islami Bank Bangladesh PLC.
Bank officials claim that customers have withdrawn an average of about Tk1,200 crore every day in the last two working days.
They claim that although there is a net liquidity deficit of Tk900 to Tk1,200 crore every day due to the increase in interbank transactions through the RTGS and NPSB systems, the situation is gradually normalizing.
In this situation, Bangladesh Bank has already provided special assistance of Tk2,500 crore to the bank to deal with its liquidity crisis. Of this, Tk2,000 crore has been provided in cash and another Tk500 crore to keep RTGS transactions running, sources said.
At the same time, Islami Bank has applied to the central bank for special liquidity assistance of Tk10,000 crore.
An important meeting of top officials of Islami Bank was held with governor Mostakur Rahman at the head office of Bangladesh Bank on Sunday (June 14).
The meeting, which lasted for more than three hours, was attended by the bank's acting managing director Md Altaf Hussain, two additional managing directors (AMDs), and six deputy managing directors (DMDs).
After the meeting, acting MD Md Altaf Hussain told reporters that it was a regular business meeting. The bank's current financial condition, cash supply, liquidity situation and future business plans were discussed in detail. Information was also given to Bangladesh Bank about where customer deposits were invested and how the money flow was managed.
Responding to a question about whether the controversy surrounding the appointment of the chairman was discussed in the meeting, he replied that it was not.
Temporary complications in online services
The bank authorities admitted that there were temporary complications in the Cellfin app and some online transactions.
However, there was no problem in transferring money between their own accounts.
Officials said that due to the restrictions imposed on inter-bank transactions, complications arose for some time.
Currently, the central account is in a positive position and the IT team is working on upgrading the system. As a result, they hope that all services will be completely normal very soon.
In addition, the officials said that the top priority is being given to the speedy distribution of remittances sent by expatriates and the resumption of the stalled check clearing activities.
Addressing customers, top officials of the bank said that there is no reason to panic.
In the past, customers withdrew money due to rumors and panic, but later that money returned to the banking system. They are hopeful that the situation will improve quickly this time too.
Sources said that an expert team of Bangladesh Bank is currently examining the financial condition, liquidity situation and information provided by the bank.
Islami Bank MD apologizes
In a video message given in this situation, Acting MD Md Altaf Hussain told customers that all deposits kept in Islami Bank are 100% safe.
He regretted the suffering caused to customers due to some temporary problems and urged everyone to be patient.
"Islami Bank is a strong and well-established financial institution. There is no reason for customers to worry about the safety of their deposits. We urge everyone to rely on the official information of the bank and not be misled by rumors or propaganda."
