Islami Bank seeks Tk 10,000 crore liquidity support from Bangladesh Bank
Islami Bank Bangladesh PLC has sought a special liquidity support of Tk 10,000 crore from Bangladesh Bank as the country's largest Shariah-based lender reels from deposit withdrawals amid unrest over its chairman’s appointment.
"Considering the current cash crisis, we have sought this support,” a senior Islami Bank official told The Daily Star today, requesting anonymity.
For all latest news, follow The Daily Star's Google News channel. He, however, added that the central bank has not communicated any decision so far.
The Daily Star called Mohammad Shahriar Siddiqui, a director and assistant spokesperson of the Bangladesh Bank, several times for comments but his phone was found switched off.
Meanwhile, protesters continued their demonstrations today, demanding the resignation of Islami Bank's newly-appointed chairman, Md Khurshid Alam.
Between June 1 and 7, the bank lost Tk 4,241 crore in deposits amid protests from the beginning of this month.
The demonstrations, organised under the banner of the Conscious Customers' Forum, disrupted operations at several Islami Bank branches.
According to internal data, Islami Bank's total deposits fell from Tk 184,382 crore on May 31 to Tk 180,141 crore on June 7.
Acting Managing Director Md Altaf Hossain confirmed to The Daily Star that Islami Bank was struggling with withdrawals, noting that instability has prompted many customers to remove their deposits.
The central bank announced Khurshid’s appointment as its chairman on May 24.
On June 1, the first working day after the Eid holidays, hundreds of people gathered in Dhaka's Motijheel, demanding that Bangladesh Bank cancel his appointment and also reinstate former Islami Bank Managing Director Omar Faruk Khan.
Islami Bank’s new chairman, Khurshid, was among the four senior Bangladesh Bank officials who resigned amid protests by central bank employees shortly after the fall of the Awami League government on August 5, 2024.
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