B Mirror Report:  Islami Bank Bangladesh PLC has requested a special liquidity support package of Tk 10,000 crore from Bangladesh Bank as it faces mounting cash withdrawal pressure amid ongoing controversy surrounding the appointment of its new chairman.

According to banking sector sources, the country’s largest Shariah-based bank formally submitted its request to the central bank on Monday. The move comes after deposit withdrawals exceeded fresh deposits by approximately Tk 4,300 crore over the five working days leading up to Sunday following the Eid-ul-Azha holidays.

Bank officials said the unusually high level of withdrawals has increased pressure on the lender’s liquidity position and its ability to maintain the required Cash Reserve Ratio (CRR). They believe some customers have withdrawn deposits due to uncertainty linked to recent developments at the bank.

A senior Islami Bank official said the bank still maintains a significant balance in its current account with Bangladesh Bank. However, the lender sought the central bank’s support as a precautionary measure to ensure uninterrupted cash availability for customers and avoid any potential CRR shortfall.

The official noted that the bank’s balance with Bangladesh Bank has fallen sharply in recent weeks from more than Tk 7,015 crore to around Tk 2,600 crore due to increased withdrawal demands.

The liquidity concerns come amid protests over the appointment of Khurshid Alam, a former deputy governor of Bangladesh Bank, as chairman of Islami Bank. Since June 1, a group operating under the banner of the “Islami Bank Customer Forum” has been demanding the cancellation of his appointment.

Protesters have alleged that Alam was involved in irregularities and corruption during his tenure at Bangladesh Bank. They also claim he was forced to resign following staff protests at the central bank after the country’s recent political transition.

Islami Bank has undergone significant management changes since the political shift of August 2024. The bank’s board was restructured under the interim government, followed by changes in the positions of chairman and managing director. The latest developments have once again brought the bank’s liquidity situation and overall operations into the spotlight.