Padma Bank, which is on the listing of extinct banks, has sent a letter to the Bangladesh Bank, seeking Tk1,300 crore liquidity lend a hand.
Confirming the receipt of the letter, Bangladesh Bank’s Executive Director and Spokesperson Husne Ara Shikha today (19 December) acknowledged no resolution has but been made by the central bank relating to the topic.
An official from the central bank acknowledged Padma Bank has requested aid from the central bank to near deposits of customers and institutions. Sooner than this, senior officials of Padma Bank had met with central bank officials.
Currently, the bank doesn’t win ample funds to near deposits, and therefore, it is seeking liquidity lend a hand from the central bank.
Efforts to contact Padma Bank’s Chief Executive Officer Kazi Md Talha for a screech were unsuccessful.
A senior official from Padma Bank, speaking on condition of anonymity, acknowledged the bank is coping with a liquidity crisis and is unable to near customers’ deposits. The bank currently holds over Tk6,000 crore in deposits. To be clear that some return of these deposits to customers, the bank has requested liquidity aid from the central bank.
In November, the Bangladesh Bank provided Tk22,500 crore in liquidity lend a hand to 6 struggling banks: Nationwide Bank, Exim Bank, Social Islami Bank, First Safety Islami Bank, Global Islami Bank, and Union Bank.
On the opposite hand, it has acknowledged while money is being printed, this could moreover withdraw that money from the market, making certain that it doesn’t drop in the lend a hand of in efforts to lend a hand inflation alter, basically based entirely entirely on the central bank’s governor.
Due to monetary irregularities, Padma Bank has been unable to near depositors’ money for a couple of years. Previously diagnosed as Farmers Bank, it modified ownership and administration in 2017 when it confronted closure attributable to irregularities and mortgage scandals. With the initiative of the authorities and the cooperation of Bangladesh Bank, enlighten-owned banks Sonali Bank, Agrani Bank, Janata Bank, Rupali Bank, and the Investment Company of Bangladesh bought the broad majority of Padma Bank’s ownership. This required an infusion of Tk715 crore in capital, nevertheless even then, the bank could moreover no longer increase.
Padma Bank became as soon as moreover listed amongst the ten extinct banks of Bangladesh Bank. As piece of enterprise sector reforms, a merger direction of became as soon as initiated virtually seven months prior to now to rescue extinct banks. The audit work for the merger of Padma Bank and Exim Bank has been completed and submitted to the central bank. On the opposite hand, the direction of stalled attributable to loads of causes.
