Bangladesh Bank on Monday provided another Tk 2,500 crore in emergency liquidity support to Islami Bank Bangladesh PLC and took direct control of its board following days of heavy deposit withdrawals and growing liquidity pressure.

The latest support came a day after the central bank dissolved the bank’s entire board, including chairman Khurshid Alam, and appointed Bangladesh Bank executive director Mohammad Zahir Hossain to exercise all powers of the board under the Bank Company Act.

Zahir Hossain came to Islami Bank head office on Monday to take charge of the bank.

With the latest injection, Islami Bank has received total Tk 5,000 crore in special liquidity support from the central bank within two days.

 The assistance follows the bank’s request for Tk 10,000 crore in liquidity support after deposit withdrawals weakened its cash position and pushed it into a cash reserve requirement shortfall.

Speaking at a briefing at the bank’s headquarters, Mohammad Zahir Hossain said there was no opportunity to look back and urged depositors to continue their banking transactions without concern.

He requested customers to maintain confidence in the bank and said efforts were under way to form a full-fledged board comprising qualified and completely neutral individuals.

‘We are working to constitute a five-member board. We want entirely impartial people who can run the bank efficiently. We hope to form a credible and neutral board very soon,’ he said.

Zahir Hossain said that he was serving as a single-member board on a temporary basis to ensure that the bank’s operations continue without disruption.

The central bank’s intervention came after weeks of turmoil surrounding the appointment of former Bangladesh Bank deputy governor Khurshid Alam as chairman on May 24.

The appointment triggered protests by a section of customers and shareholders, while deposit withdrawals accelerated sharply.

Bank officials previously said customers had withdrawn around Tk 8,000 crore in recent weeks, with daily withdrawals reaching between Tk 1,000 crore and Tk 1,200 crore at the peak of the panic.

Customers in several areas also complained about difficulties withdrawing funds, while some reported ATM disruptions and dishonoured cheques.

However, acting managing director Md Altaf Hossain said the situation had begun to improve.

He said the bank received another Tk 2,500 crore from Bangladesh Bank on Monday, adding that the full amount of the previous Tk 2,500 crore support provided on Sunday had not yet been utilised.

‘I hope those who withdrew money out of panic will regain confidence and return to the bank,’ he said.