Padma Bank, facing severe financial difficulties, has requested Tk 1,300 crore in liquidity support from Bangladesh Bank to repay depositors. The bank’s CEO, Kazi Md Talha, stated that the application for support was made last week, but no response has been received yet. Padma Bank’s liabilities include Tk 6,100 crore in deposits. Recently, Md Shawkat Ali Khan from Sonali Bank was appointed as chairman of Padma Bank. Established as Farmers Bank in 2013, Padma Bank has a history of financial irregularities, with Tk 3,500 crore siphoned out in its initial years. In 2017, the government intervened, and the bank was rebranded as Padma Bank in 2019. However, its financial struggles continued, leading to a proposed but uncompleted merger with EXIM Bank. As of September, 85.91% of its loans had defaulted. Last month, Bangladesh Bank provided Tk 22,500 crore in liquidity support to other crisis-hit banks, but Padma Bank’s request remains pending.
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