Private lender AB Bank has urged Bangladesh Bank (BB) to provide an additional Tk 2,000 crore in liquidity support to cope with increasing deposit withdrawals amid an asset quality review and the merger of five other commercial banks.

The request went to the central bank on November 11.

Syed Mizanur Rahman, managing director and CEO of AB Bank, said they have sought the support after customers began withdrawing deposits following the merger process of five shariah-based banks.

During the tenure of the interim government, AB Bank has already taken Tk 500 crore in liquidity assistance from BB, alongside eight other banks.

Since the interim government took office, the central bank has provided more than Tk 50,000 crore to troubled lenders. Those banks have yet to return the funds.

Rahman told The Daily Star that AB Bank is now paying interest on the earlier Tk 500 crore support.

International auditors have completed the asset quality review of six banks under a decision of the banking reform taskforce. Reviews of three more banks are underway, including AB Bank.

The bank saw further withdrawals after news of these reviews made the headlines, said Syed Mizanur Rahman.

Central bank officials said the governor has decided not to provide further liquidity support because many banks cannot repay what they already owe.

AB Bank, once a reputed lender formerly known as Arab Bangladesh Bank, has grown financially weak over the years.

Its bad loans rose to Tk 22,279 crore at the end of 2024, equal to 67 percent of total loans and advances, according to the 2024 annual report.

Non-performing loans of the lender stood at Tk 10,115 crore in September last year.

The bank reported a Tk 3,113 crore net loss in the January-September period of this year, compared with a Tk 1.58 crore profit in the same period a year earlier.

The central bank appointed an observer in 2017 to monitor AB Bank closely, yet its condition continued to deteriorate.

Officials at the bank said loans approved through irregularities in previous years have since turned default. Weak recovery from major borrowers has worsened the situation.

They said the bank is struggling to recover funds from Beximco Group, Sikder Group, Asian City, Buildtrade and Mahin Group.