Written by The Banking Post
The state-run Bangladesh Development Bank PLC (BDBL) has sought Tk 50 billion from the government to strengthen its operations, expand investment, and boost inward remittances.
In a letter to the Finance Adviser, Managing Director and CEO Md Jashim Uddin said the bank was hit hard by the previous government’s attempt in 2024 to merge it with another state-owned bank through what he termed an “illegal process.”
The move triggered panic among depositors, leading to large withdrawals and a shift of business transactions elsewhere, he said. “Customers’ confidence was severely affected. The bank’s overall deposit situation became fragile,” Jashim wrote.
Liquidity pressures ease under interim govt
The merger bid also demoralised staff, deepening liquidity stress and hurting operations. However, Jashim said the interim government’s timely steps and the bank’s board guidance helped restore stability. “Customers’ confidence has been restored in all our 51 branches across the country,” a senior bank official said.
BDBL has also presented business and operational plans to the finance ministry, including opening at least one branch in each of 28 districts where it currently has no presence.
Financial snapshot
Despite the turbulence, the bank reported Tk 275.9 million in operating profit and Tk 55.8 million in net profit in 2024. Loss-making branches fell from 12 in 2023 to five in 2024.
Its Capital to Risk Weighted Assets Ratio (CRAR) stood at 22.38% at the end of 2024, well above the regulatory requirement of 12.50%. Total assets reached Tk 59.89 billion, with loans and advances at Tk 25.55 billion.
Deposits, however, declined sharply at the end of 2024 due to the failed merger attempt. Written-off loans dropped 42.37% year-on-year to Tk 14.13 billion, down from Tk 24.51 billion.
A Finance Division official confirmed receipt of BDBL’s funding request. He noted that the bank has so far paid Tk 695 million in cash dividends to the exchequer and raised its paid-up capital by Tk 2 billion to Tk 6 billion.
Expansion push
BDBL said the requested Tk 50 billion would help it expand its branch network, mobilise remittances, and channel more funds into productive sectors. “With proper support, the bank can contribute more to the country’s overall investment and economic growth,” Jashim urged in his letter.
