Economy
Sonali Bank Lends Tk7,000 Crore to National Bank to Help Repay Depositors
Translated by Desk Report
State-owned Sonali Bank has provided a Tk7,000 crore loan to liquidity-strapped National Bank to help it return customers’ deposits. The three-month loan carries a 10 percent interest rate and is fully guaranteed by Bangladesh Bank.
According to information provided by Sonali Bank Managing Director Md Shawkat Ali Khan, the funds have already been transferred. Bangladesh Bank will repay Sonali Bank under the guarantee if National Bank fails to settle the loan on time.
Khan expressed hope that the financing would help restore depositors’ confidence in National Bank. He also stressed the importance of ensuring that the funds are used appropriately.
National Bank Chairperson Professor Melita Mehjabeen said the bank was preparing to restore normal customer services from 15 October, allowing depositors to withdraw their money.
As part of these preparations, the bank has begun accepting withdrawal applications. Approximately 7,000 customers had submitted applications, according to the chairperson.
She said arrangements were being made to supply all branches with sufficient funds to meet customers’ withdrawal needs from the scheduled date.
The financing follows a meeting last week between National Bank’s senior officials and Bangladesh Bank Governor Md Mostakur Rahman, during which the bank sought assistance. The central bank assured them of the liquidity support needed to repay depositors.
The governor emphasised that protecting depositors was the regulator’s priority. He instructed National Bank to take the necessary steps to ensure customers could withdraw money according to their needs from all branches and ATM booths.
Following the meeting, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said customers seeking withdrawals must not be turned away. He added that the bank would receive the liquidity support required to begin returning deposits from 15 October.
National Bank has faced a prolonged funding shortage and a high level of non-performing loans. Its cumulative losses over the four years beginning in 2022 amounted to approximately Tk9,000 crore.
According to the bank’s annual report, its losses reached Tk2,430 crore in 2025, up approximately 41 percent from Tk1,722 crore in the previous year. At the end of 2025, non-performing loans accounted for 59.69 percent of its total loan portfolio. Last month, four depositors filed a writ petition with the High Court seeking the return of their savings, bringing renewed attention to the bank’s liquidity crisis.
One of Bangladesh’s oldest private commercial banks, National Bank has relied on unsecured liquidity assistance from Bangladesh Bank in recent years as it struggled to meet withdrawal demands.
