Padma Bank has institutional (government-private) deposits of about 2,800 crore taka. Individual deposits are 1,500 crore taka. Out of this, small deposits are 5 billion taka. Those who are unable to return the deposits of small amounts of money, while the government and institutional deposits have started to be returned. Sector stakeholders say that this is not right. Individual deposits should be returned first. Then government deposits.

It is learned that a meeting was recently called at Bangladesh Bank to return the money of the Climate Change Trust Fund. At that meeting, it was decided that if the new board of Padma Bank is formed, the first board meeting will be held to discuss the return of the money of the Climate Fund with priority.

When asked, Bangladesh Bank Executive Director and Spokesperson Husne Ara Shikha told Jugantor that a meeting was recently held with Padma Bank to return the money of the Climate Fund. Since the bank does not have a board now, no final decision could be reached. However, a policy decision has been made that once the board is formed, initiatives will be taken to return the climate money in the first meeting.

Meanwhile, several small depositors expressed their anger and said that the common people are not getting money, while efforts have been made to return government and institutional money. This should not be done. The money that the hard-working people have saved should be given first.

When asked, Padma Bank’s Chief Executive Officer (CEO) Kazi Md. Talha told Jugantar that a new board of directors may be formed within the next week. The matter will be discussed then. However, the reality is that we are in a liquidity crisis. Everyone knows and understands this. There is nothing new to say.

It is learned that the government has sought a roadmap to recover Tk 874 crore of the Climate Change Trust Fund stuck with Padma Bank. In view of this, a meeting was held at Bangladesh Bank with the Finance Department, Financial Institutions Department; Ministry of Environment, Forest and Climate Change and high-level representatives of Padma Bank.

Sources said that in 2015, 508 crore taka was kept as a permanent deposit from the Bangladesh Climate Change Trust Fund under the Ministry of Environment, Forest and Climate Change in the Gulshan, Motijheel and Gulshan South Avenue branches of the then Farmers Bank (now Padma Bank) for a period of one year.

It was renewed until 2018 due to non-payment of interest at the end of the period. Until that time, Padma Bank had returned only 80 crore taka in several installments. The amount stuck in interest and principal stood at 597 crore 62 lakh taka until the 2018-19 fiscal year. After the expiry of the period of this deposit, the bank authorities did not give it when the trust tried to withdraw the money at various times. As of February this year, the organization’s debt to the bank, including interest and principal, stood at 873 crore 82 lakh taka.

Three years after its establishment in 2013, Padma Bank faced a liquidity crisis due to significant irregularities. Even then, government agencies like the Bangladesh Climate Change Trust Fund invested significant amounts of money in Padma Bank under the lure of high interest rates and political interference.

The matter was presented at the meeting of the Advisory Council held on September 12 under the chairmanship of Dr. Muhammad Yunus, the chief advisor to the interim government, to recover this money. At the meeting, it was decided to prioritize the issue of monetizing this money and formulate a specific roadmap on a priority basis after discussing it with representatives of all parties concerned, including Bangladesh Bank. The central bank has started working to implement this decision.

Other organizations whose funds are stuck: The Chittagong Port Authority recently sent a letter to Bangladesh Bank and the Ministry of Finance seeking assistance to return the 179 crore taka stuck in Padma Bank. The state-owned Life Insurance Corporation had deposited 109 crore taka in Padma Bank. By 2018, the interest rate had increased to 125 crore taka. Since then, the Life Insurance Corporation has not received the money back despite sending 31 letters to Padma Bank to cash the deposit.

Titas Gas Transmission and Distribution Company deposited Tk 530 million in FDR with Padma Bank for a period of three years from 2015 to 2018. The company was also forced to renew the FDR until 2029 on the condition of payment in stages, as per Padma Bank’s proposal. Bangladesh Telecommunication Regulatory Commission (BTRC) also has Tk 250 million in FDR stuck with this bank.

Padma Bank scandal: Padma Bank came under discussion for financial irregularities in less than three years of its inception. According to an investigation report by Bangladesh Bank, between 2013 and 2017, more than Tk 3,500 crore was transferred from the bank through irregularities, a large part of which is now in default.

Based on these incidents, corruption allegations were made against the then chairman of the bank, former Home Minister Mohiuddin Khan Alamgir, and the chairman of the audit committee, Mahabubul Haque Chisti. The two accused were forced to resign in November 2017.

In 2018, the government took steps to revive the bank. As part of this, Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank and Investment Corporation of Bangladesh (ICB) invested Tk 7.15 billion and bought 60 percent of the bank’s shares. However, since the bank has been making continuous losses since the investment, these state-owned institutions have not received any dividends against their investments. On the contrary, the three investing banks and ICB are paying interest to depositors against this money.