DNCC faces challenges retrieving FDRs from financially troubled banks

Its fixed deposits remain unrecovered due to a liquidity crisis in four banks

Dhaka North City Corporation, or DNCC, is struggling to retrieve Tk 290 million in fixed deposits from four financially strained banks, despite the deposits reaching maturity.

The banks – Global Islami Bank, Social Islami Bank, First Security Islami Bank, and Bangladesh Commerce Bank – cited liquidity issues as they requested more time to return the funds with interest.

DNCC’s Chief Executive Officer Mir Khairul Alam told bdnews24.com, “We have requested the funds after the deposits matured, but the banks have asked for more time. We informed the central bank, but there has been no response yet. We hope they will provide guidance on the matter.”

Although DNCC submitted withdrawal requests in July for the matured deposits, no funds have been received 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 were expected with accrued interest, though DNCC has not disclosed the total due amount.

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

A Bangladesh Bank official said the banks had attracted deposits by offering high returns, leading many to choose them over others.

Following recent political shifts, Bangladesh Bank has halted liquidity support for these institutions, directing them to seek assistance from stronger banks instead.

So far, five stable banks have provided liquidity assistance to these institutions.