Sonali Bank lends Tk 7,000cr to National Bank with Bangladesh Bank guarantee

State-owned Sonali Bank PLC has lent Tk 7,000 crore to financially distressed National Bank PLC to help the private lender meet customers’ withdrawal demands.

The Bangladesh Bank has provided a 100 percent guarantee for the three-month loan, Md Shawkat Ali Khan, managing director of Sonali Bank, confirmed to The Daily Star yesterday.

The loan carries an interest rate of 10 percent, he said, adding that the transaction had been completed.

“We face no risk here because Bangladesh Bank is providing the guarantee,” Shawkat said, explaining that if National Bank fails to repay the loan within the stipulated period, the central bank will repay Sonali Bank.

He expressed hope that the funds would help restore depositors’ confidence but stressed that National Bank must use the money for the intended purposes.

“The National Bank needs to use this money properly. It must be utilised for the right purposes,” he said.

Prof Melita Mehjabeen, chairman of National Bank, said the bank was preparing to resume full banking services on October 15, allowing customers to withdraw their deposits. The bank has already started taking withdrawal requests as part of its preparations to restore customer services.

It had received nearly 7,000 requests as of yesterday, Melita said.

“We are making arrangements to ensure that funds reach every branch by tomorrow. From the day after tomorrow, we will try to provide services to all our customers,” she said.

National Bank’s top executives had met Bangladesh Bank Governor Md Mostaqur Rahman to seek support last week. The central bank assured the lender of liquidity assistance to help it repay depositors.

At the meeting, Governor Mostaqur said protecting depositors would remain the regulator’s priority.

He instructed National Bank to take the necessary measures to ensure that depositors could withdraw money according to their needs from all branches and ATM booths.

“Depositors must not be turned away under any circumstances. From October 15, they will get their money back. In this regard, the bank will be provided with liquidity support as needed,” BB Executive Director and Spokesperson Arief Hossain Khan said after the meeting.

Melita said while the Bangladesh Bank instructed National Bank to reopen and resume operations, the regulator had not specified the exact mechanism through which assistance would be provided.

National Bank incurred losses of nearly Tk 9,000 crore in the four years since 2022. In 2025, the bank posted a loss of Tk 2,430 crore, up 41 percent from Tk 1,722 crore in the previous year, according to its annual report.

Its non-performing loans accounted for 59.69 percent of total outstanding loans at the end of 2025.

The latest liquidity support comes after four National Bank depositors approached the High Court last month seeking access to their savings.

One of Bangladesh’s oldest private lenders, National Bank has received uncollateralised liquidity support from Bangladesh Bank over the past several years amid funding shortages and a high level of non-performing loans.