The Bangladesh Development Bank Limited (BDBL), a state-run commercial bank, has sought a special long-term liquidity facility to the tune of Tk 10 billion to meet its capital shortage amid substantial withdrawal by the depositors in recent times, sources said.
It also sought exemption from the provision to maintain the statutory liquidity ratio (SLR), they added.
The BDBL managing director (MD) and chief operating officer (CEO) Md. Jashim Uddin has requested the Bangladesh Bank to take urgent steps in this regard, arguing that the volume of withdrawal by the institutional depositors has increased significantly.
In a recent letter to the central bank, he further said the withdrawal spree follows negative news carried by the social media, newspapers and electronic media.
The institutional depositors have already withdrawn Tk 10.24 billion even before the maturity of the deposits.
Besides, more institutional depositors have submitted demands for Tk 4.30 billion, seeking withdrawing their funds, it also mentioned.
The bank cannot meet the daily liquidity demand. It faces difficulty to maintain Cash Reserve Requirement (CRR) and SLR, he said.
Besides, the state-owned bank is regularly facing difficulties in meeting the SLR due to the withdrawals. Although the bank is able to preserve SLR through purchasing Treasury bills and bonds, the CEO said, it cannot maintain loan-deposit ratio because of the continuous withdrawal pressure by the clients concerned.
The BDBL has invested in different state agencies, banks and non-banking financial institutions including ICB, Padma Bank and ICB Islamic bank.
The bank tried to withdraw the investments from the agencies but failed due to reluctance by the agencies concerned to pay back the money. For this reason, Tk 5.04 billion remain stuck with them at present, the letter added.
When contacted, an executive of the BDBL said, "We are trying to collect new deposits and improve the existing liquidity crisis."
Besides, the BDBL management has asked the branch officials to take effective steps to collect marginal deposits by improving client-bank relationship, he added.
Currently, BDBL has 50 branches across the country. It has also applied for opening new branches.
In the letter, the bank's CEO expressed hope that "Business and deposits situation would increase if we can open the new branches which are waiting for approval by the central bank.
He claimed that the bank has been a profitable entity since its inception. The authorised and paid up capital of the bank are Tk 10 billion and Tk 6.0 billion respectively, according to the bank.
© 2025 - All Rights with The Financial Express
