DNCC encounters difficulties in retrieving FDRs from financially struggling banks

Dhaka North City Corporation (DNCC) is facing challenges in recovering Tk 290 million in fixed deposits from four financially struggling banks, even though the deposits have matured.

The banks—Global Islami Bank, Social Islami Bank, First Security Islami Bank, and Bangladesh Commerce Bank—have cited liquidity problems and requested more time to return the funds along with interest. DNCC's Chief Executive Officer, Mir Khairul Alam, told bdnews24.com, "We made withdrawal requests after the deposits matured, but the banks have asked for additional time. We have informed the central bank, but have yet to receive a response. We are hopeful that they will offer guidance on this issue." Despite submitting withdrawal requests in July for the matured deposits, DNCC has not received any funds so far.

The deposits include Tk 40 million with Global Islami Bank, Tk 100 million with First Security Islami Bank, Tk 50 million with Bangladesh Commerce Bank, and Tk 100 million with Social Islami Bank. These funds, along with accrued interest, were expected to be returned, though DNCC has not disclosed the total amount due.

bdnews24.com was unable to contact representatives from the banks involved for comment.

A Bangladesh Bank official explained that the banks had attracted deposits by offering high returns, which led many to choose them over others. However, following recent political developments, Bangladesh Bank has stopped providing liquidity support to these banks and has advised them to seek assistance from more stable financial institutions.

So far, five stable banks have extended liquidity support to these troubled banks.