BB extends Tk 2,500cr emergency support to Islami Bank

Bangladesh Bank has extended Tk 2,500 crore in emergency liquidity assistance to Islami Bank Bangladesh PLC as the country‍‍`s largest Shariah-based lender faces mounting withdrawal pressure and a severe cash shortage.

The central bank approved the financial support on Sunday, with the funds deposited directly into Islami Bank‍‍`s account maintained at Bangladesh Bank, according to sources familiar with the development.

Following the liquidity injection, the bank‍‍`s cheque clearing operations, which had been temporarily disrupted, resumed normal activities.

Bank officials said Islami Bank has recently experienced an unusual surge in cash withdrawals, while fresh deposits have slowed significantly. The growing imbalance between withdrawals and deposits intensified pressure on the bank‍‍`s liquidity position.

The situation became more complicated after recent changes in the bank‍‍`s leadership. Ahead of the Eid-ul-Azha holidays, then chairman M Zubaidur Rahman stepped down from his position. Shortly afterward, former Bangladesh Bank deputy governor Md Khurshid Alam was appointed as an independent director and chairman of the bank.

At present, five independent directors on the board, including the chairman, have been appointed by the central bank.

The leadership changes triggered protests by a group identifying itself as the Islami Bank Sachetan Grahak Forum. The group has put forward several demands, including the removal of the newly appointed chairman.

The developments also sparked discussion in Parliament, contributing to public concern among depositors.

Amid growing uncertainty, many customers rushed to withdraw funds, prompting the bank to seek Tk 10,000 crore in emergency support from Bangladesh Bank.

The Tk 2,500 crore assistance marks the first major liquidity support provided by the central bank to help stabilize the institution and restore confidence among customers.

Officials expect the move to ease immediate cash-flow pressures while broader efforts continue to address the bank‍‍`s financial challenges.