National Bank resumes operations, depositors access funds

National Bank resumed regular banking operations on Thursday, allowing customers to withdraw and deposit money according to their needs after a prolonged period of liquidity shortages and restrictions on withdrawals.
The bank has begun returning deposits to customers who applied for withdrawals over the past four days, although payments are being made in phases and some restrictions remain on large withdrawals.
According to bank sources, around 11,000 customers submitted applications between 11 and 14 October to withdraw approximately Tk2,000 crore. 
Branches across the country reported customers’ requirements to the head office, which subsequently supplied funds to meet the demand. The bank initially prioritised payments to current and savings account holders, while other applicants are expected to receive their money in phases.
Alim Hossain, a long-time customer of the bank’s Mirpur branch, said he applied for a withdrawal on 11 October after learning that the bank would resume returning deposits.
“I have not withdrawn all the money from my account. I applied on 11 October and withdrew only what I currently need. I hope there will be no problems withdrawing money in the future,” he said.
He urged the government and Bangladesh Bank to ensure that customers do not face difficulties accessing their own money.
Another customer, Mijan Rahman, said he had struggled to withdraw money from his savings certificates over the past two years. He expressed relief after being able to withdraw the profit from his savings certificates on Thursday.
Bank sources said customers who applied for withdrawals on 11 October began receiving payments on Thursday. Some other customers were also allowed to withdraw money on humanitarian grounds or under special consideration.
However, customers seeking large withdrawals were sometimes asked to return after a few days, indicating that the bank has yet to fully overcome its liquidity constraints.
National Bank Chairman Professor Dr Melita Mehjabeen told the Daily Sun that the bank had received withdrawal requests worth around Tk188 crore and paid approximately Tk81 crore so far.
She said payments were being made after necessary verification, including to many customers who visited branches without prior applications. Most large withdrawal requests exceeded Tk1 lakh, and customers visiting branches to withdraw money had been paid. She expected the bank’s overall situation to become clearer by Saturday.
“Given its size and significance, National Bank should not be allowed to fail. Extensive irregularities took place in the past, and these must be addressed by ensuring integrity, accountability and good governance,” she said.
Melita said the bank was receiving government support, but substantial work remained to complete its reform process. With its own capacity in remittance and LC businesses, the bank aims to return to normal operations through sound management, good governance and improved customer service, she added.
National Bank described the resumption of regular banking services as the beginning of a new chapter for the institution.
On 8 October, the bank announced that customers would be able to conduct all types of regular transactions from 15 October, including withdrawals through branches and ATM booths nationwide.
It also said counter services, mobile applications, internet banking and other digital services would resume at full capacity from that date. The resumption follows Tk7,000 crore in liquidity support from state-owned Sonali Bank, backed by a guarantee from Bangladesh Bank.
However, the central bank has imposed conditions on the use of the funds. The money cannot be used to repay deposits held by National Bank’s current or former directors or to provide new loans.
In a letter to the bank’s managing director last Monday, Bangladesh Bank said the liquidity support would carry an annual interest rate of 10% and have a three-month tenure.
According to bank data, National Bank’s deposits stood at Tk33,515 crore as of 12 October, against outstanding loans of Tk43,230 crore. Nearly 66% of its loans were classified as defaulted at the end of June, underscoring the severity of its financial problems.
National Bank was controlled by the Sikder Group from 2009 to 2023, a period marked by financial irregularities that contributed to mounting losses and the bank’s deteriorating financial health.
The resumption of regular transactions is expected to provide relief to depositors who have struggled to access their money. However, the bank’s long-term recovery will depend on improving loan recovery, strengthening financial discipline and restoring depositors’ confidence.