Five banks provide Tk 945cr liquidity support to fragile banks

Four financially troubled banks have received TK 945 crore in liquidity support from five stronger banks, backed by guarantees from Bangladesh Bank (BB).

The five banks are City Bank PLC, Mutual Trust Bank PLC (MTBL), Dutch-Bangla Bank PLC, Bengal Commercial Bank Ltd, and Eastern Bank PLC- have provided a total of TK 945 liquidity support to four weak banks - First Security Islami Bank Limited (FSIBL), Social Islami Bank PLC, National Bank Ltd and Global Islami Bank PLC, confirmed BB Executive Director and spokesperson Husne Ara Shikha.

Of the banks, FSIBL has received TK 300 crore, with TK 200 crore from City Bank, TK 50 crore from MTBL, and another TK 50 crore from Dutch-Bangla Bank Limited (DBBL).

National Bank has been given a total of TK 270 crore. Of the amount, City Bank provided TK 200 crore, Bengal Commercial Bank provided TK 20 crore and MTBL TK 50 crore.

Besides, Social Islami Bank Limited received a total of TK 350 crore. Of the amount, City Bank provided TK 300 crore and MTBL TK 50 crore.

Lastly, Global Islami Bank received TK 25 crore from Eastern Bank.

The liquidity injection has been initiated to support these banks in overcoming the ongoing cash crunch. Some banks are still in the process of completing the necessary documentation before extending further support to other affected institutions.

The development comes as the weak banks are facing a severe liquidity crisis.