Bangladesh Bank today provided Tk 2,500 crore in special liquidity support to Islami Bank Bangladesh PLC to help the country's largest Shariah-based lender overcome an acute cash shortage, according to officials.

Bangladesh Bank Executive Director and spokesperson Arief Hussain Khan confirmed the matter to The Daily Star.

The move comes amid liquidity pressures at the bank following unrest over the appointment of its new chairman last month.

A group of customers under the banner of the Conscious Customers' Forum has been staging protests against the appointment. The controversy triggered a wave of withdrawals, with a significant number of depositors withdrawing funds from the bank.

As a result, Islami Bank's liquidity position deteriorated sharply, leaving it struggling to meet withdrawal demands.

The bank also reportedly failed to maintain the required Cash Reserve Ratio (CRR) with the central bank.

Facing the crisis, the lender sought Tk 10,000 crore in liquidity assistance from Bangladesh Bank last week.

The Tk 2,500 crore disbursed is the first tranche of the requested assistance, bank officials said.

On June 12, Bangladesh Bank Governor Mostaqur Rahman hinted at possible liquidity support for Islami Bank at a post-budget press conference.

"The crisis at Islami Bank will be resolved soon. Depositors will not face difficulties in withdrawing their money. If necessary, emergency liquidity support will be provided."