Thousands of customers across Bangladesh are unable to withdraw their own savings from several private banks, despite repeated visits and pleas.

Many complain they are sent away with excuses or given only a fraction of what they request, a problem most acute at banks weakened by loan scams and poor management.

Even after reforms and liquidity support, the affected banks have failed to restore normal services, shattering depositors’ trust. The crisis is not limited to Dhaka — similar scenes are reported from Chattogram, Cox’s Bazar, and other districts.

Following the political change of August 2024, the new government and Bangladesh Bank took measures to stabilise the sector, including dissolving 14 bank boards, injecting Tk52,000 crore in liquidity, and facilitating borrowing from stronger banks. While small savers have been able to withdraw some funds, those with larger deposits still face severe restrictions.

Some banks are reportedly unable to pay more than Tk5,000 a month to customers. At Union Bank’s Badarkhali branch in Cox’s Bazar’s Maheshkhali, poultry farmer Shahida Noor was offered just Tk5,000 — to be paid two weeks later — when she sought to withdraw part of her Tk1 lakh savings for medical expenses. Schoolteacher Abdul Kader made 18 trips to withdraw Tk1.27 lakh without receiving a single taka.

The same experience is shared by customers of Global Islami Bank, First Security Islami Bank, Union Bank, EXIM Bank, Padma Bank, and Social Islami Bank. A rush to withdraw deposits after the political shift left these institutions struggling to cope, despite massive central bank support.

In Feni, Union Bank customer Kabir Ahmed has been unable to access Tk6 lakh saved for his daughter’s wedding, forcing him to postpone the event. NGO worker Farhana Bohni said her project payments, sent via First Security Islami Bank, remain inaccessible. Businessman Imam Hossain Miraz from Bhola’s Charfassion branch of Social Islami Bank cannot withdraw more than Tk5,000 a month despite having Tk12 lakh in his account.

On-site visits to several Chattogram branches found long queues of customers clutching cheques, with security guards barring entry to those requesting large amounts. In many cases, Tk50,000 cheques are reduced to Tk5,000 payouts.

“This crisis is no longer just financial — it’s becoming a humanitarian disaster,” said a businessman at Chattogram’s Khatunganj, unable to pay staff salaries despite having funds in his account.

Bank managers admit they are rationing cash, with some branches limited to Tk1 lakh total daily withdrawals. Experts blame mismanagement, irregularities, and prolonged bank merger processes for eroding confidence.

Bangladesh Bank says it is addressing the problems in phases but warns that more weak banks will be forced into mergers if they fail to improve core financial indicators.

According to central bank data, the five banks set for merger hold Tk1,47,368 crore in deposits and Tk1,90,484 crore in loans, of which 77% — Tk1,46,918 crore — are classified as non-performing. Capital shortfalls total Tk45,203 crore, affecting 92 lakh depositors and over 15,000 employees.

Finance Adviser Dr Salehuddin Ahmed says the banking sector has lost 80% of its money and would require $35 billion to recover, according to IMF estimates. Against such a backdrop, Bangladesh Bank’s assurance that “there is no need to worry about deposits” rings hollow for customers whose hard-earned savings remain trapped inside the banking system.