Published : 05 Oct 2026, 05:10 PM
Updated : 05 Oct 2026, 05:10 PM
Bangladesh Bank is working to make privately owned Padma Bank, formerly Farmers Bank, more viable instead of liquidating it, central bank spokesperson Arief Hossain Khan says.
Speaking to reporters at Bangladesh Bank on Monday, he said: “Bangladesh Bank has not taken any decision to shut down this bank. I am saying this in very strong terms.”
A newspaper published a report on Sunday headlined “Padma Bank is closing down.” The following day, Arief said, “Bangladesh Bank has discussed with the shareholding government banks how Padma Bank can overcome its problems and be transformed into a more dynamic bank. They are working together on this. However, the central bank has made no decision at this moment to shut down or liquidate the bank.”
BB has been providing liquidity support through state-owned banks to keep the financially distressed Padma Bank operational.
The state-owned Sonali, Janata, Agrani and Rupali banks have provided fresh deposits in addition to their existing deposits.
In 2019, the four banks converted their deposits into investments and acquired shares in Padma Bank. Together, they hold around 68 percent of the bank’s total shares.
To facilitate this, provisions of the Bank Company Act relating to directors were relaxed, allowing the managing directors of the state-owned banks to become members of Padma Bank’s board of directors.
Since then, Padma Bank has been run by the managing directors of the state-owned banks. The state-owned Investment Corporation of Bangladesh (ICB) has also acquired shares in the bank.
Padma Bank is currently chaired by Sonali Bank Managing Director Shawkat Ali Khan.
Last Thursday, Governor Mostaqur Rahman held a meeting with the managing directors of the four banks, who also serve on Padma Bank’s board. Various proposals were raised at the meeting on how to make the bank more dynamic.
Central bank officials said there was no discussion about liquidation at the meeting. Referring to the meeting, the central bank spokesperson said: “We sat with the managing directors to discuss how the bank [Padma] could be made a little more vibrant. These kinds of discussions are taking place. Now, if it is to be made vibrant, there are thoughts about what can be done. Bangladesh Bank is working on this.”
He said, “Liquidity problems are being discussed. No decision has been made to send the bank for liquidation.”
