Some private banks in the country are grappling with severe liquidity crises. Despite receiving financial support from the Bangladesh bank (BB), they remain unable to resolve their challenges, leaving them unable to fulfill customer cash withdrawal demands.
Over the past few months, these troubled banks have borrowed approximately Tk28,000 crore. Of this amount, Tk22,500 crore was issued through new currency printed by Bangladesh Bank, while the remaining Tk5,500 crore was secured through guarantees from various banks, according to sources from Bangladesh Bank and other financial institutions.
A visit to several branches of these banks revealed numerous instances of customers being unable to withdraw funds, even for urgent needs.
For instance, Rafiqul Islam, a student from Daffodil International University, has been attempting to cash a check worth Tk2 lakh for two months to pay his semester fees and his father’s medical expenses. Despite reaching out to the head office and even after the branch manager intervened, he couldn’t withdraw the money. Frustrated, Rafiqul remarked, “I never thought I’d have to go through such struggles to withdraw my own savings. I don’t even know when I’ll get the money.”
Similarly, Nuruzzaman Saikat, another customer, visited a branch to withdraw Tk50,000 but was only given Tk5,000, sparking his frustration. He lamented, “I have a small business in Old Dhaka and employees to pay. Even though I have money in the bank, I can’t access it, and now I’m embarrassed in front of my staff.”
The crisis extends beyond individual customers to organizations. A lawyer who transferred loan proceeds to his daughter’s account at the same branch reported that he was able to withdraw Tk50,000 initially but couldn’t access the remaining funds. The branch has limited withdrawals to Tk5,000 per month per customer. Despite meeting the branch manager, the situation remained unresolved. The lawyer expressed his frustration, noting that although he couldn't access his money, he still had to pay interest on the loan.
Acting Managing Director of Social Islami Bank, Forkan Ullah, acknowledged the issue, stating, “We are unable to meet all customer demands, but we’re trying to provide something to everyone. If all customers demand money at once, no bank in the world can handle it. The pressure has decreased compared to previous weeks, and with continued support from Bangladesh Bank, we expect to fully meet customer demands soon.”
Similarly, a General Manager from a Dilkusha branch mentioned that ATMs started disbursing Tk5,000 per customer per day from November 27. However, customers cannot withdraw funds from both ATMs and branches on the same day, and these restrictions remain in place.
According to Bangladesh Bank’s updated data, non-performing loans surged to Tk284,997 taka in July-September 2023, accounting for 16.93% of total distributed loans—more than double the amount of the previous quarter.
Economic analysts identify liquidity shortages as the banking sector’s most pressing issue, particularly in Shariah-based banks controlled by groups like the Chattogram-based S. Alam Group during the previous government. These banks are now struggling to meet withdrawal demands.
Source: Kaler Kantho
BDST: 1200 HRS, DEC 11, 2024
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