Islami Bank Bangladesh PLC has requested a special liquidity support of Tk10,000 crore from Bangladesh Bank as the bank comes under pressure from a sharp rise in customer withdrawals amid unrest surrounding the appointment of its new chairman.
Bank sources said the request was submitted after the institution experienced unusually high cash outflows in recent days, leading to mounting liquidity strain. During the five working days following the Eid holidays up to last Sunday, withdrawals reportedly exceeded deposits by nearly Tk4,300 crore, putting significant pressure on the bank’s cash position.
Officials believe that concerns linked to the ongoing leadership dispute may have triggered panic-driven withdrawals by a section of depositors. The situation has further complicated the bank’s ability to maintain the required Cash Reserve Ratio (CRR) with the central bank.
The bank has been facing governance and operational challenges since 2022 following allegations of irregularities and corruption. After the political transition in August 2024, Bangladesh Bank intensified regulatory oversight and took steps aimed at restoring stability and governance in the institution.
Tensions escalated after former Bangladesh Bank Deputy Governor Khurshid Alam was appointed chairman of the bank, prompting protests under the banner of the Islami Bank Customers’ Forum since 1 June, demanding withdrawal of the appointment. Protesters have alleged past misconduct, intensifying uncertainty among customers.
According to bank officials, the current account balance maintained with the central bank has dropped sharply from over Tk7,015 crore to around Tk2,600 crore. Although the bank still maintains funds with the central bank, officials say the liquidity request is intended to manage the CRR shortfall and serve as a precautionary stabilisation measure.
