TBT DESK: Once trusted by millions, five private banks in Bangladesh have now become a source of fear and frustration for their customers. EXIM Bank, Social Islami Bank, Union Bank, Global Islami Bank and First Security Islami Bank are struggling so severely that they can barely return depositors’ money — in many cases, not even their own staff salaries.

Across Dhaka’s Motijheel and Naya Paltan, as well as in districts such as Satkhira, branches of these banks present a silent, uneasy picture. Inside, employees sit helplessly, while outside, customers line up in hope. Each day, 20 to 30 people arrive desperate to withdraw funds, but few walk away with more than a fraction of what they need.

One officer at Global Islami Bank, requesting anonymity, admitted that the central bank had withdrawn support ahead of the planned merger. “For over a month, we have been unable to pay anyone properly. Even our own salaries are stuck,” he said, his voice heavy with frustration.

For customers, the consequences have been devastating—a man in Naya Paltan seeking money for his father’s medical treatment left empty-handed after repeated visits. “My father’s savings are locked inside, but I cannot access them. With the small amount they allowed me, foreign treatment is impossible,” he said, close to tears. Another client, requiring Tk 1.1 million for heart surgery, was handed just Tk 200,000.

Union Bank’s managing director, Md Humayun Kabir, conceded that even corporate fixed deposits could not be repaid. “We are struggling to return even small savers’ money,” he said, though he insisted staff salaries were still being processed.

Ordinary depositors describe a life reduced to despair. A schoolteacher in Satkhira was told he could withdraw no more than 5,000 Tk a week, despite having over Tk 300,000 in his account. Another man, after 18 fruitless visits, could not withdraw even Tk 1,000 from his savings. “I had put money aside for safety,” said Saddam Hossain, “but now I am borrowing just to keep my family afloat.”

The staff are no better off. One officer, entitled to Tk 80,000 a month, explained that he could access only tiny sums — and often had to pay a 15-Tk fee at other banks’ ATMs. “I never thought I’d be begging friends for loans while my salary sits beyond reach,” he said.

The Bangladesh Bank had earlier injected Tk 520 billion in liquidity support to rescue these banks after the fall of the previous government in August 2024. But with non-performing loans consuming 77 % of their lending portfolios, and a capital shortfall of over 450 billion Tk, the crisis has only deepened. More than 9.2 million customers and 15,000 employees are caught in the storm.

Former central bank governor Dr Salehuddin Ahmed has warned that “80 % of funds in the banking sector have been looted,” estimating that restructuring may require at least $35 billion.

In response, the central bank has now approved a draft Deposit Protection Ordinance 2025, promising depositors a 100 % guarantee of their savings — even in troubled or merging institutions. “A strong new bank will be created from the merger, backed by government support,” said Bangladesh Bank spokesperson Arif Hossain Khan.

Still, uncertainty remains. With EXIM and Social Islami Bank reluctant to join the merger, progress has stalled. Economists argue that only a swift consolidation can restore public confidence. Until then, depositors like Saddam, the schoolteacher, and countless others remain trapped in a cycle of waiting, pleading and hoping — a painful reminder that for many Bangladeshis today, their own bank has become their worst nightmare.