Accra:Sonali Bank PLC has extended Tk 7,000 crore in liquidity support to National Bank PLC through a three-month loan agreement, fully backed by Bangladesh Bank. This arrangement is intended to help the private lender resume normal banking operations and facilitate deposit withdrawals starting October 15.
According to Bangladesh Sangbad Sangstha, the loan agreement carries an interest rate of 10 percent and has been finalized. Under the terms, Bangladesh Bank guarantees repayment to Sonali Bank if National Bank fails to settle the loan within the agreed period.
National Bank is set to fully restore banking services on October 15, allowing customers to access their deposits. The bank has already begun processing withdrawal requests, receiving nearly 7,000 as of October 13. Arrangements are being made to ensure that funds are available at all branches by October 14 in preparation for the reopening.
Last week, senior executives from National Bank met with Bangladesh Bank Governor Md Mostaqur Rahman to request liquidity support to meet depositor demands. Following the meeting, Bangladesh Bank committed to providing the necessary liquidity and instructed National Bank to ensure that customers could withdraw funds from all branches and ATM booths starting October 15.
National Bank has been grappling with financial challenges, reporting cumulative losses of nearly Tk 9,000 crore over the past four years since 2022. Its annual report revealed a loss of Tk 2,430 crore in 2025, a 41 percent increase from the previous year's loss of Tk 1,722 crore. Additionally, non-performing loans comprised 59.69 percent of the bank's total outstanding loans at the end of 2025.
The recent liquidity support follows a legal move by four National Bank depositors last month, who sought access to their savings through the High Court. National Bank, one of Bangladesh's oldest private commercial banks, has received liquidity support from Bangladesh Bank in previous years due to funding shortages and high levels of non-performing loans.