Published: 01:48 AM, 06 October 2026
BB wants to make Padma Bank vibrant, not liquidate it: Spokesperson
Bangladesh Bank is trying to make privately owned Padma Bank, formerly known as Farmers Bank, more viable instead of liquidating it, said central bank spokesperson ArifHossain Khan.
Speaking to journalists at Bangladesh Bank on Monday, he said, "Bangladesh Bank has not made any decision that this bank is going to be shut down. I am saying this emphatically."
A newspaper published a report on Sunday under the headline "Padma Bank Is Being Shut Down." The following day, ArifHossain Khan said, "Bangladesh Bank has discussed with the shareholder institutions and government-owned banks how Padma Bank can overcome its problems and be transformed into a more dynamic and vibrant bank. They are working together on this. However, the central bank has no decision at this moment to shut down or liquidate the bank."
To keep the financially distressed Padma Bank operational, Bangladesh Bank has been providing liquidity support with the mediation of state-owned banks.
The state-owned Sonali, Janata, Agrani and Rupali banks have provided new deposits in addition to their existing deposits.
In 2019, these four banks converted their deposits into investments and acquired shares in Padma Bank. Together, they hold around 68 percent of the bank's total shares.
To facilitate this, the provisions of the Bank Company Act concerning directors were relaxed, allowing the managing directors of the state-owned banks to become members of Padma Bank's board of directors.
Since then, Padma Bank has been run by the managing directors of the state-owned banks. The state-owned investment institution Investment Corporation of Bangladesh (ICB) also acquired shares in the bank.
Currently, Sonali Bank Managing Director Shawkat Ali Khan serves as chairman of Padma Bank.
Last Thursday, Governor MostaqurRahman held a meeting with the managing directors of the four state-owned banks, who also serve on Padma Bank's board of directors. Various proposals were raised at the meeting on how to make the bank more dynamic.
Central bank officials said there was no discussion about liquidation at the meeting. Regarding the meeting, the central bank spokesperson said, "We sat with the managing directors to discuss how to make the bank [Padma] a little more vibrant. This kind of discussion is taking place. Now, if we want to make it vibrant, what can be done? These are the kinds of ideas being considered. Bangladesh Bank is working on this."
He added, "The liquidity problems are being discussed. No decision has been made to send the bank for liquidation."
