TBM Report
Islami Bank Bangladesh PLC, the nation’s largest Shariah-based lender, has formally requested BDT 10,000 crore in emergency liquidity assistance from the Bangladesh Bank. The move aims to mitigate severe liquidity pressure triggered by an unprecedented surge in deposit withdrawals following unrest over the appointment of a new chairman. Official sources within the bank revealed that during the first five working days post-Eid holidays, net withdrawals exceeded BDT 4,300 crore—an amount significantly higher than normal transaction cycles.
The massive cash outflow has pushed the bank toward potential non-compliance with the Statutory Cash Reserve Ratio (CRR). Internal ledgers indicate that the bank’s current account balance with the central bank plummeted from BDT 7,015 crore to approximately BDT 2,600 crore in a matter of days. A senior official stated that the liquidity support request is a preemptive measure to ensure uninterrupted customer service and stabilize the bank’s internal cash reserves.
The instability was sparked by the appointment of Khurshid Alam, a former Deputy Governor of the Bangladesh Bank, as the new Chairman. A group titled the “Islami Bank Customer Forum” has been protesting since June 1, demanding the cancellation of his appointment due to allegations of past corruption and administrative irregularities. This leadership crisis comes at a critical time when the bank is undergoing structural reforms following the ousting of the S. Alam Group’s control after the political transition in August 2024.
