Premier Bank has failed to repay a Tk 5,000 crore special loan taken from Bangladesh Bank due to ongoing liquidity problems. The central bank had provided the loan for three months, but after the repayment deadline passed on May 2, 2026, the term was extended by another three months. The loan, issued on February 2, included Tk 1,000 crore in cash and Tk 4,000 crore in bonds. Although the bank paid Tk 142 crore in interest, it could not return the principal amount.

The loan was granted under sections 16(4)(d) and 17(1)(b) of the Bangladesh Bank Order at an interest rate of 11.5 percent for 90 days, secured by a demand promissory note. Similar assistance had previously been extended to five other banks, including Islamic banks, which also struggled to repay. Premier Bank’s liquidity crisis deepened after several large corporate clients withdrew deposits, leaving it unable to maintain required CRR and SLR reserves.

Following the fall of the Awami League government, Bangladesh Bank restructured Premier Bank’s board, citing earlier mismanagement and alleged fraud under former chairman HBM Iqbal’s tenure. Despite regulatory support and deferral facilities, the bank still reported losses and significant capital shortfalls.