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which Tk 5,131 crore were non-performing.

The private commercial lender’s interest income is also negative, and it is suffering from a liquidity shortfall, indicating a severe crisis across all financial soundness indicators, the DOS observed in the report. The bank is now struggling to even pay salaries to its officials and employees.

Since August last year, the bank’s 850 employees have been receiving their salaries in their accounts, but they are not allowed to withdraw the full amount at once, states the report, adding that the money can be withdrawn in phases.

The total number of officials at the bank has come down to 653 as of June this year.

Contacted, Kazi Md Talha, acting chief executive officer of Padma Bank, told The Daily Star that they are in a critical condition as the central bank has yet to make any decision about the bailout package.

“We need money to run our bank,” he said, adding that the BB is likely to merge the bank after completing the merger process of the five shariah-based banks.

Originally launched as Farmers Bank, the private lender was granted a licence in 2013, allegedly on political considerations.

Since its inception, it has struggled with financial irregularities, with more than Tk 3,500 crore siphoned off within just three years of its establishment.

For years, it failed to return depositors’ money. Its unpaid deposits now amount to Tk 6,100 crore.

The private bank’s financial troubles date back to 2015-16, when the central bank detected massive irregularities. In response, its ownership and management underwent significant restructuring in 2017, after Muhiuddin Khan Alamgir, a former presidium member of the Awami League, resigned as chairman.

To rescue Farmers Bank from collapse, the government intervened with financial support. State-owned institutions, including the Investment Corporation of Bangladesh, Sonali Bank, Janata Bank, Agrani Bank, and Rupali Bank, collectively acquired a 60 percent stake for Tk 715 crore.

In 2019, it changed its name to Padma Bank as part of an effort to improve the bank’s image and regain customer confidence following a period of financial crises and irregularities.

The bank’s financial health took a turn for the worse after its inclusion in the Awami League-led government’s plan in March last year to merge 10 weak banks with stronger institutions.

The move triggered fresh panic among depositors, leading to increased withdrawals. Since then, approximately Tk 600 crore in deposits has been withdrawn from the bank.