State-owned Sonali Bank has extended a Tk 7,000 crore loan to private sector National Bank under a Bangladesh Bank guarantee to help the struggling lender clear customer dues and resume normal banking operations starting on Thursday.
According to central bank sources, depositors had been unable to withdraw their funds from National Bank for an extended period, prompting four depositors to approach the court.
Following the court's directive instructing the bank to return the depositors' money, the matter drew the attention of high-level government authorities, who subsequently directed Bangladesh Bank to take steps to normalise the bank's transactions.
Following a meeting between Bangladesh Bank Governor Md Mostaqur Rahman, National Bank Chairman Prof Melita Mehzabein and acting Managing Director Zahidul Haque, the central bank decided to provide liquidity support.
The directive was later endorsed during a meeting of National Bank's Board of Directors.
Sonali Bank Managing Director Shawkat Ali Khan said the bank extended the loan to National Bank at a 10 percent interest rate backed by a Bangladesh Bank guarantee.
Under the agreement, if National Bank fails to repay the loan on time, Bangladesh Bank will reimburse Sonali Bank within three days of the loan's maturity.
Central bank data reveals that National Bank previously borrowed Tk 985 crore from various banks, which it failed to repay on time, leaving the liability with Bangladesh Bank.
Currently, Bangladesh Bank's total claims on National Bank stand at Tk 10,568 crore.
National Bank fell under severe financial distress following years of control by the Sikdar Group during the Awami League regime.
Following the political changeover in 2024, the group lost control of the bank through central bank intervention. The bank is currently managed by members associated with the Multimode Group, Hosaf Group, and Armana Group, and has been incurring losses annually since 2022.
According to Bangladesh Bank statistics, 56.44 percent of National Bank’s total disbursed loans are currently classified as non-performing, amounting to approximately Tk 24,000 crore. The bank faces a provision shortfall of nearly Tk 20,000 crore and recorded a net loss of Tk 1,706 crore in 2024.