Dhaka, Feb 26 (V7N) – Ahead of Eid, National Bank received Tk 1,000 crore in emergency liquidity support from Bangladesh Bank to address a cash shortage. The fund, provided for 90 days at 11.5% interest, aims to help the bank meet increased demand for withdrawals during the holiday season.

The liquidity assistance came after National Bank requested support to maintain cash flow, as its deposits and loan collections were insufficient to cover customer demands.

Background on National Bank’s Financial Challenges

  • Past Mismanagement: For nearly 15 years, the bank’s board was dominated by the Sikder Group, a powerful business conglomerate. The bank faced multiple irregularities under their control.

  • Leadership Changes: After the death of Sikder Group Chairman Zainul Haque Sikder, disputes among his children worsened the bank’s instability.

  • Government Intervention:

    • December 2023: The board was dissolved, and independent director Syed Farhat Anwar became chairman. Discussions were held about merging National Bank with United Commercial Bank (UCB), which Bangladesh Bank later rejected.

    • May 2024: A new board appointed under S Alam Group, but the group was removed after the government fell in August 2024.

  • Current Leadership: BNP Vice Chairman Abdul Awal Mintu has returned as chairman, overseeing the bank during this period of financial strain.

Bangladesh Bank has previously provided emergency liquidity support to National Bank multiple times due to its ongoing cash flow challenges.

This intervention ensures that National Bank can meet Eid-related withdrawal demands and maintain operational stability during the high-demand period.

END/SMA/AJ