Islami Bank Receives Another Tk 1,500 Crore Liquidity Support
Graphics: Agamir Somoy
Instability at Islami Bank has begun to ease following the removal of Chairman Khurshid Alam. Concerns among various stakeholders have also slightly diminished, with customers and other stakeholders seeing signs of relief. Under the banner of 'Conscious Customers’ Assembly,' protestors submitted a memorandum to the central bank governor on Tuesday, demanding the formation of a full-fledged board for the bank.
On the same day, Bangladesh Bank provided an additional Tk 1,500 crore in liquidity support to meet customer demand. With this, total emergency liquidity support has reached Tk 6,670 crore, according to officials.
Since June 1, many customers have withdrawn funds from the bank out of panic. The situation intensified on Sunday, prompting restrictions on cheque clearing, fund transfers, and cash withdrawals from branches and ATM booths. However, after the cancellation of the board, including the chairman Khurshid Alam, withdrawal pressure began to ease. Bangladesh Bank provided Tk 1,500 crore in liquidity support on Tuesday, following Tk 2,670 crore on Sunday and Tk 2,500 crore on Monday.
The Islami Bank Conscious Customers’ Forum thanked the Bangladesh Bank governor for removing Khurshid Alam. However, they said appointing an administrator or chairman alone is not sufficient and demanded the swift formation of a full board. They also noted that withdrawal pressure has started to decline.
According to the forum, the new board must include honest, competent, professional individuals who have the trust of customers. They also demanded that individuals facing allegations of financial irregularities or those previously associated with the S. Alam Group should not be included in the board.
They further called for the return of shares allegedly taken over illegally and forcibly by the S. Alam Group to their rightful owners.
Khurshid Alam was appointed on May 24. However, after the bank reopened following the Eid holidays on June 1, his impact began to be felt. Over the past 15 days, customers have withdrawn more than Tk 12,600 crore from the bank.
Islami Bank Acting Managing Director Altaf Hossain said, “Customers have reduced their withdrawals. We urge customers not to panic.”
