Islami Bank Bangladesh PLC has sought a special liquidity support of Tk 10,000 crore from Bangladesh Bank following a sharp rise in cash withdrawals amid unrest over the appointment of its new chairman.

According to bank sources, the country’s largest Shariah-based bank applied to the central bank for the facility on Monday after facing liquidity pressure caused by unusually high withdrawals in recent days.

Sources said that during the five working days up to last Sunday following the Eid holidays, withdrawals exceeded deposits by nearly Tk 4,300 crore. Bank officials believe a section of customers withdrew their funds due to concerns arising from the ongoing dispute surrounding the bank’s leadership.

The bank has been grappling with various challenges since 2022 following allegations of widespread irregularities and corruption. After the fall of the Awami League government in August 2024, Bangladesh Bank intensified efforts to restore good governance in the institution.

A fresh controversy emerged after former Bangladesh Bank Deputy Governor Khurshid Alam was appointed chairman of the bank. A group operating under the banner of the Islami Bank Customers’ Forum has been staging protests since June 1, demanding the cancellation of his appointment.

The forum alleges that Khurshid Alam was involved in corruption during his tenure at Bangladesh Bank and was compelled to resign following protests by central bank officials after the political changeover.

Bank sources said the increased withdrawals have once again made it difficult for Islami Bank to maintain the required Cash Reserve Ratio (CRR) with the central bank, prompting it to seek emergency liquidity support.

A senior bank official said the bank still has funds in its account maintained with Bangladesh Bank. However, the request for assistance was made to address the CRR shortfall and as a precautionary measure.

According to the official, the bank’s current account balance with the central bank, which previously stood at more than Tk 7,015 crore, has fallen to around Tk 2,600 crore.

Islami Bank had been under the control of the S Alam Group since 2017. Following the formation of the interim government, the bank’s board was reconstituted, while its former chairman and managing director recently stepped down from their positions.