National Bank PLC is expected to restore normal cash withdrawal facilities at all its branches and ATMs from 15 October, with Bangladesh Bank taking steps to ensure sufficient cash is available. The move comes as the lender continues to deal with liquidity pressures, heavy non-performing loans and recurring losses.
The issue was discussed at 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 depositors’ ability to withdraw their funds were among the key matters considered during the meeting.
The governor directed the bank’s management to take all necessary measures to protect depositors’ interests and preserve confidence in the banking system. He also stressed that National Bank should maintain disciplined operations and ensure that customers are able to withdraw their deposits according to their requirements.
Following the meeting, National Bank’s chairman said recent measures taken by Bangladesh Bank had helped improve governance within the institution. She also said changes had been introduced in loan management to strengthen the bank’s efficiency and operational capacity.
Deputy Governors Mohammad Habibur Rahman, Mohammad Kabir Ahmad, Mohammad Sarwar Hossain and Mohammad Anisur Rahman attended the meeting.
National Bank has been under financial strain for several years. During the Awami League government’s tenure, the bank’s board remained under the control of Sikder Group for a prolonged period. Bangladesh Bank intervened in 2024, after which 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 change in ownership and management, however, has not immediately resolved the bank’s underlying financial weaknesses. High levels of defaulted loans, continued losses and liquidity problems remain significant concerns.
According to Bangladesh Bank data, 56.44 per cent of National Bank’s total loans are classified as non-performing. The amount involved is around Tk24,000 crore. The bank also has a provisioning shortfall of approximately Tk20,000 crore against those loans, leaving it with a substantial financial burden.
The bank has reported losses every year since 2022. Its loss reached Tk1,706 crore in 2024, and the lender remains in a loss-making position this year.
For depositors, the availability of cash at branches and ATMs is particularly significant because access to funds is central to confidence in any banking institution. Ensuring adequate liquidity can help ease immediate withdrawal pressures and allow customers to meet their financial needs without disruption.
The planned cash supply from 15 October is therefore intended to address the immediate concerns surrounding withdrawals. Bangladesh Bank’s instruction also reflects the importance of maintaining depositor confidence while National Bank works to strengthen its operations.
The longer-term recovery of the bank will depend on addressing its deeper financial problems. Reducing defaulted loans, improving recovery, meeting provisioning requirements and returning to sustainable profitability will remain critical challenges. The restoration of regular cash access is an important immediate step, but rebuilding the bank’s financial strength will require sustained improvements in its overall management and lending practices.
