Sonali Bank Lends National Bank Tk7,000 Crore as a Deposit Rush Tests Bangladesh's Bailout Plan

State-owned Sonali Bank has lent Tk7,000 crore to National Bank, the troubled private lender racing to prove it can meet a central bank deadline, after roughly 7,500 withdrawal requests landed on the bank in just three days. The loan runs three months at 10 percent interest, and Bangladesh Bank has guaranteed all of it, meaning Sonali Bank is covered in full if National Bank cannot repay when the loan matures. It is the clearest sign yet of how the central bank intends to get National Bank through October 15, the date by which depositors are supposed to be able to withdraw their money in full again.

• Sonali Bank lent National Bank Tk7,000 crore for three months at 10 percent interest, with Bangladesh Bank guaranteeing the full amount.
• National Bank received about 7,500 withdrawal requests over three days, though its chairman says the total amount sought came in well below the bank's own estimates.
• Bangladesh Bank has told National Bank to resume full, normal operations, branches, ATMs and all, from October 15.
• National Bank already owes the central bank Tk10,568 crore, created through new money, after an earlier Tk985 crore interbank loan went unpaid and had to be settled by Bangladesh Bank.

How the Tk7,000 crore loan is structured

Sonali Bank's managing director, Shawkat Ali Khan, was candid about why his bank was willing to lend such a large sum to a lender widely seen as one of the weakest in the country's banking sector. "The guarantee leaves Sonali Bank exposed to no risk," he said, explaining that if National Bank fails to repay at the end of the three month term, Bangladesh Bank has committed to reimbursing Sonali Bank within three working days. He also noted that similar guaranteed financing had previously gone to Islamic banks facing liquidity strain, suggesting this is becoming a standard tool in the central bank's playbook for propping up weak lenders without directly printing the cash itself, at least not visibly.

That distinction matters more than it might appear. National Bank already owes Bangladesh Bank Tk10,568 crore, money the central bank created to cover the bank's obligations, including an earlier Tk985 crore loan from several banks that National Bank failed to repay on time. Routing fresh support through Sonali Bank, with a guarantee rather than a direct injection, keeps the transaction looking like ordinary interbank lending rather than another round of money creation, even though Bangladesh Bank remains the ultimate backstop either way.

Why depositors are lining up

National Bank has been accepting withdrawal requests from customers holding more than Tk1 lakh since October 11, part of a staged return to normal operations after months of liquidity strain. About 7,500 such requests arrived in the first three days. Chairman Melita Mehzabeen said the total value sought was well below what the bank had braced for, though she did not give a figure. The bank has sent SMS notices to roughly 1.25 million customers explaining how to request withdrawals and has set up a hotline, while working to stock cash across its 221 branches, 65 sub-branches and 53 ATMs ahead of the October 15 deadline.

Not every account will see money move freely even after that date. Accounts frozen or restricted under government or Bangladesh Bank directives remain blocked, and dormant accounts or those with outdated KYC information stay suspended until customers update their records. The bank's remittance operations in Malaysia, the Maldives and Singapore are also preparing to resume more fully, after liquidity limits meant most remittances had not been routed through National Bank in recent months.

A bank still working through the Sikder years

National Bank's troubles trace back further than this month's withdrawal rush. Once among the country's leading private banks, its board was overhauled after the Awami League government took power in 2009 and control passed to the Sikder family. A second board change followed the fall of that government on August 5, 2024, but the bank has still not recovered from what regulators describe as irregularities and financial plunder during the Sikder era. High non-performing loans have kept the bank in losses, and it has struggled to meet withdrawal demands even with substantial Bangladesh Bank liquidity support already in place.

The pressure reached a head when four depositors who could not access their savings took the matter to the High Court, which directed Bangladesh Bank to ensure they could withdraw. On October 8, Mehzabeen and acting managing director Zahidul Haque met Governor Md Mostaqur Rahman, who made restoring full withdrawal capacity from October 15 an explicit priority and promised the bank support if it ran into difficulties implementing the plan. The Sonali Bank loan announced on October 13 is the first concrete sign of what that support looks like in practice.

"The governor has assured the bank that Bangladesh Bank will provide support if it faces difficulties while implementing these measures," a central bank spokesperson said, describing the instructions given to National Bank to ensure depositors can get their money back.

Figure	Amount
Sonali Bank's new loan to National Bank	Tk7,000 crore, 3 months, 10% interest
Withdrawal requests received (first 3 days)	About 7,500
Customers notified by SMS	About 1.25 million
Branches, sub-branches and ATMs stocking cash	221, 65 and 53
National Bank's existing debt to Bangladesh Bank	Tk10,568 crore

What it means for you

If you are a National Bank depositor, the practical takeaway is that the bank's October 15 promise now has a funding source behind it, Tk7,000 crore of fresh, centrally guaranteed liquidity, rather than resting on hope alone. That is a meaningful improvement, though the bank's own insiders caution that a lasting recovery still depends on better loan recovery and a stronger balance sheet, not just one bridge loan. If your deposit sits in a dormant account or one with outdated KYC details, resolving that paperwork before October 15 is worth doing now rather than waiting in a longer queue later.

For depositors at other weaker banks, the Sonali Bank model, a guaranteed interbank loan rather than a direct bailout, is worth watching as a template Bangladesh Bank may lean on again. If you are weighing whether to keep money in a bank going through this kind of stress versus a stronger institution, BD Financial Review's FDR rate comparison tool is a useful way to see what more stable banks are currently offering on fixed deposits before you decide where your savings are best placed.