Islami Bank receives Tk 2,500cr sepecial support from Bangladesh Bank

Islami Bank Bangladesh PLC has received a special liquidity support of Tk 2,500 crore from Bangladesh Bank to address its ongoing cash-flow pressures amid increased withdrawal of deposits, according to sources familiar with the matter.

The central bank extended the financial assistance on Sunday (June 14), marking the first tranche of support after the bank reportedly sought Tk 10,000 crore in emergency liquidity assistance.

The move comes as Islami Bank faces mounting pressure following weeks of unrest surrounding demands for the removal of its newly appointed chairman.

Since the Eid holidays, protests linked to the issue have continued, while a significant volume of deposits has reportedly been withdrawn from the bank, creating liquidity stress.

In response to the situation, Islami Bank recently approached the central bank seeking substantial liquidity support to ensure smooth banking operations and meet customer withdrawal demands. Bangladesh Bank has now approved Tk 2,500 crore as an initial support package, with further assistance likely to be considered based on the bank’s liquidity requirements.

The central bank had earlier signalled its willingness to support the country's largest Islamic lender.

Speaking at a post-budget press conference on Friday, Bangladesh Bank Governor Mostaqur Rahman sought to reassure depositors, saying there was no reason for panic.

“The difficulties facing Islami Bank will be resolved soon. Depositors will not face any problems in withdrawing their money,” the governor said.