MD MEHEDI HASAN

Padma Bank, formerly Farmers Bank, has sunk into such a financial abyss that the lender is struggling to pay its employees’ monthly salaries and has sought a Tk 5,000 crore bailout package from Bangladesh Bank to stay afloat.

Since August last year, the bank’s 850-odd employees have been receiving their salaries in their accounts but they are not allowed to withdraw the full amount at once. They can take out the money in phases.

Additionally, incentives have been suspended for years and promotions have been halted since last year, The Daily Star has learnt from banks’ officials who spoke on the condition of anonymity for fear of reprisal.

The bank spends about Tk 5-6 crore every month on salaries while it recovers around Tk 14-15 crore from borrowers, according to internal data.

From the recovered amount, the bank repays small depositors and covers employee salaries, Kazi Md Talha, acting chief executive officer of the bank, told The Daily Star last week.

To address its fund crunch, Padma sought a Tk 5,000 crore bailout from the BB in January. However, the central bank has yet to respond to the request.

“If we receive the funds, we can repay both individual and institutional depositors,” he said.

Padma Bank, which was granted For

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