State-owned BASIC Bank has formally approached the government for regulatory permission to host and manage the bank accounts of state-financed and donor-funded development projects. The initiative forms part of the lender’s wider strategy to reinforce its deposit base, decrease funding expenses, and systematically restore its financial viability.
In an official memorandum submitted to the Ministry of Finance, the Deputy Managing Director of BASIC Bank, Abu Md Mofazzal, requested that administrative protocols be initiated to permit the bank to manage these institutional project funds.
High Liability Costs Disrupt Profitability Goals
According to the bank’s correspondence, a primary obstacle to its financial rehabilitation is its current structural dependence on high-interest-bearing deposits. The bank explained that generating necessary profit margins remains unfeasible due to the compounding pressure of a large portfolio of classified loans combined with these high-cost liabilities, which together keep its baseline cost of funds unsustainably high.
To address these vulnerabilities, BASIC Bank has submitted a definitive, time-bound financial recovery model to the central bank, Bangladesh Bank, and the Financial Institutions Division (FID). A vital component of this institutional roadmap relies on securing zero-interest and low-cost deposit pools to rebalance its balance sheet.
Currently, the lucrative accounts of state and donor-supported initiatives are largely restricted to a select group of peer state-owned commercial banks and specialized institutions. These entities benefit significantly from access to non-interest-bearing public funds, giving them a distinct competitive edge in funding costs and enhancing their corporate earnings.
Comparative Institutional Matrix and BASIC Bank Financial Status
The following table contextualises the primary public finance repositories in Bangladesh alongside the current capital structure of BASIC Bank:
| Institution Name | Entity Classification | Project Account Access | BASIC Bank Financial Matrix (As of December 2025) |
| Sonali Bank | State-Owned Commercial Bank | Maintained | Authorised Capital: BDT 55.00 Billion |
| Janata Bank | State-Owned Commercial Bank | Maintained | Paid-Up Capital: BDT 10.85 Billion |
| Agrani Bank | State-Owned Commercial Bank | Maintained | Total Active Accounts: 48,740 |
| House Building Finance Corp. | Specialised Financial Institution | Maintained | Restructuring Horizon: 3-Year Operational Plan |
Historical Irregularities and Legal Reforms
The management of BASIC Bank maintains that entry into the public sector project market would drastically cut its interest expenditures, accelerating its transition into a profitable enterprise. The institution reported that its core retail footprint is expanding, with its total operational accounts rising steadily to 48,740 by December 2025.
The current financial distress of BASIC Bank stems from legacy irregularities that occurred during the tenure of former chairman Sheikh Abdul Hye Bachchu, who was appointed in September 2009 and granted a further two-year extension in 2012. Central bank audits subsequently established that Bachchu, alongside multiple board members, committed gross credit violations contrary to the regulations of the Bank Company Act, resulting in the government dissolving the bank’s board of directors in 2014.
The regulatory investigations conducted by Bangladesh Bank exposed that roughly 35 billion Taka was illegally disbursed through unauthorised credit streams between 2009 and 2011, centred primarily in the bank’s Gulshan, Dilkusha, and Shantinagar branches. To manage these legacy non-performing assets, BASIC Bank is executing a targeted three-year action plan utilizing intensive recovery measures and institutional reforms.
A representative from the Ministry of Finance confirmed that the government has received the bank’s low-cost deposit proposal and is actively reviewing the request.