National Bank PLC is set to resume normal cash withdrawal facilities across all its branches and automated teller machines (ATMs) from 15 October, with Bangladesh Bank taking steps to ensure adequate cash supplies. The move is expected to allow depositors to withdraw money according to their needs after the bank faced prolonged liquidity pressures.
The decision was discussed during a meeting on Thursday (8 October) between Bangladesh Bank Governor Mostakur Rahman and National Bank Chairman Professor Melita Mehjabeen and acting Managing Director Zahidul Haque. The bank’s liquidity position and the difficulties faced by depositors in accessing their funds were among the key issues discussed.
During the meeting, the governor instructed National Bank’s management to take necessary measures to protect depositors’ interests and maintain public confidence in the banking system. He also stressed the need to keep the bank’s operations orderly and ensure that depositors can withdraw funds when required.
National Bank’s chairman said recent measures taken by Bangladesh Bank had helped strengthen governance at the institution. Changes have also been made to loan management with the stated aim of improving the bank’s efficiency and operational capacity.
Deputy Governors Mohammad Habibur Rahman, Mohammad Kabir Ahmad, Mohammad Sarwar Hossain and Mohammad Anisur Rahman were also present at the meeting.
National Bank has been facing serious financial challenges despite changes in its management structure. During the Awami League government’s tenure, the bank’s board had for years been under the control of Sikder Group. Following intervention by Bangladesh Bank in 2024, Sikder Group’s control over the bank was removed. Members of the families associated with Multimode Group, Hosaf Group and Armana Group are now involved in the bank’s management.
The bank, however, continues to carry the burden of past irregularities, a high level of non-performing loans, repeated losses and liquidity problems. According to Bangladesh Bank data, 56.44 per cent of National Bank’s total loans are classified as defaulted. The amount involved is around Tk24,000 crore. Against these loans, the bank faces a provisioning shortfall of roughly Tk20,000 crore.
The scale of the problem has put considerable pressure on the bank’s financial position. High defaulted loans can weaken a bank’s ability to generate income and restrict the availability of funds for regular operations. For National Bank, addressing these weaknesses remains a major challenge alongside efforts to restore depositors’ access to cash.
The bank has also recorded losses every year since 2022. In 2024, its loss stood at Tk1,706 crore, while it remains in a loss-making position this year.
Against this backdrop, ensuring sufficient cash at branches and ATMs from 15 October is aimed at easing immediate pressure on depositors. The measure should allow customers to access their money more normally while giving the bank greater scope to stabilise its day-to-day operations.
The immediate availability of cash, however, is only one part of the wider challenge facing National Bank. Reducing defaulted loans, addressing the provisioning deficit, improving loan recovery and restoring sustained profitability will be crucial to strengthening the bank’s financial position over the longer term. For depositors, the availability of cash from 15 October is therefore a significant immediate development, while the bank’s broader financial recovery will depend on how effectively its underlying weaknesses are addressed.
