Islami Bank seeks Tk 100bn cash injection from central bank as withdrawal ‘pressure’ deepens

No immediate decision comes from Bangladesh Bank

Amid street protests and heated exchanges in parliament over Islami Bank Bangladesh, the troubled lender has asked the central bank for Tk 100 billion in liquidity support.

The Shariah-based bank said it is facing increasing “pressure of the withdrawal of money” amid heated discussions surrounding the appointment of a new chairman.

An official from each bank confirmed the money was sought on Tuesday to address the “cash crisis”.

However, Bangladesh Bank did not take any decision until the evening.

Islami Bank, which is a publicly traded company, had received liquidity injection from the central bank in the past.

Islami Bank's Chief Financial Officer Abdur Rahim told bdnews24.com, "We are holding a meeting, let's see what happens. Liquidity arrangements will have to be made.”

Confirming the sum of money sought, he said the bank's managing director will later disclose details on the matter to the media.

Meanwhile, Bangladesh Bank Assistant Spokesperson Shahriar Siddiqui said Islami Bank had requested for the money as a loan.

The private bank’s investments in multiple government Sukuks - or Shariah-compliant financial instruments - including treasury, amount to Tk 182.93 billion. And the loan is sought from the central bank against this amount.