Bangladesh Bank injects Tk 52,500 crore to support struggling banks

Bangladesh Bank Injects Tk 525 Billion into Weak Banks Amid Sector Reforms

Bangladesh Bank has injected an unprecedented Tk 525 billion (52,500 crore) into 12 financially troubled banks by printing new money, despite maintaining a tightened monetary policy, UNB reports.

According to central bank data released Saturday, this major liquidity support is part of broader efforts to stabilise the banking sector, including plans to merge several fragile institutions.

Out of the total, Tk 330 billion (33,000 crore) has been disbursed to 10 banks as demand loans to help meet depositor withdrawals. Another Tk 190 billion (19,000 crore) in current account deficits at nine banks has been converted into demand loans, providing a critical financial lifeline.

The banks receiving support include First Security Islami Bank, Social Islami Bank (SIBL), National Bank, EXIM Bank, Global Islami Bank, Islami Bank Bangladesh, AB Bank, Bangladesh Commerce Bank Ltd (BCBL), Investment Corporation of Bangladesh (ICB), Basic Bank, and Padma Bank. First Security Islami Bank received the highest amount—Tk 142 billion (14,200 crore).

Bangladesh Bank Governor Dr Ahsan H Mansur confirmed that five private Islamic banks will be merged soon, regardless of upcoming national elections. “This is an ongoing process, and we expect the next government to continue it,” he said.

He added that liquidity support has already been extended to the banks, and six institutions—cited for irregularities and loan fraud—are scheduled to be merged by July.

“These banks will be temporarily placed under government control,” Dr Mansur explained. “Their shares will later be handed over to public and international strategic investors after reorganisation.”