2,000 Customers Return to Islami Bank
Graphics: Agamir Somoy
Customer concerns surrounding Islami Bank have eased significantly following the cancellation of Khurshid Alam’s appointment as chairman. As confidence in the bank begins to recover, the rate of cash withdrawals has declined. Customers who withdrew funds or transferred deposits to other banks between June 1 and June 15 have also started returning.
According to bank data, 1,442 accounts were reactivated on Wednesday and 552 on Tuesday. These restored accounts brought back more than Tk 15 billion to Islami Bank. On the same day, Bangladesh Bank also provided the bank with an additional Tk 10 billion in liquidity support.
Bank data shows that Islami Bank’s cash liquidity stood at Tk 1.72 trillion as of Wednesday, down from Tk 1.84 trillion on June 1. This indicates a decline of around Tk 120 billion over 17 days. Although customers withdrew Tk 126 billion between June 1 and June 14, a review of deposits and withdrawals over the past three days shows that net withdrawals have fallen to just below Tk 120 billion. The bank said improved customer confidence and stability have led to the reopening of closed or transferred accounts.
Acting Managing Director of Islami Bank, Altaf Hossain, said customers are withdrawing less than before. He said nearly 1,500 customers deposited money back into the bank on Wednesday after previously withdrawing funds. He added that several hundred customers returned the previous day as well. Many who had transferred funds to other banks have also begun the process of bringing their money back to Islami Bank, although procedural requirements are causing some delays.
He further said that customers who suffered losses during the period of instability may continue their accounts as before, and no loss or additional charges will be imposed in such cases.
Meanwhile, Bangladesh Bank provided an additional Tk 10 billion in liquidity support on Wednesday to ensure the normal functioning of all banking services.
Earlier, the central bank provided Tk 15 billion on Tuesday, Tk 25 billion on Monday, and Tk 26.7 billion on Sunday. In total, liquidity support has reached Tk 76.7 billion. Islami Bank had earlier requested Tk 100 billion in emergency cash support from Bangladesh Bank.
On Wednesday, leaders of the Islami Bank Conscious Customers Forum met Bangladesh Bank Governor Mostakur Rahman. After the meeting, forum convener Nur Un Nabi told reporters that the governor agreed with their seven-point demands regarding Islami Bank.
