BASIC Bank is currently facing a severe liquidity crisis due to ongoing deposit withdrawals triggered by news of its potential acquisition by a private commercial bank. The bank falls short of meeting the required Statutory Liquidity Ratio (SLR) by Tk 1,800 crore, exacerbating its financial challenges. In response to the crisis, BASIC’s management has urgently requested government agencies to deposit funds at low interest rates and clarify the decision to merge with City Bank.
The bank has experienced a significant outflow of deposits, amounting to Tk 2,500 crore as of Thursday, with major government institutions among the depositors. The situation has left BASIC unable to borrow from the central bank due to insufficient securities, raising concerns about its ability to meet depositor demands and maintain client confidence. There are fears among employees regarding salary payments amidst the crisis. Despite the merger decision being presented as voluntary by the central bank, BASIC Bank managers assert that it was forced upon them.
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