Karmasangsthan Bank has sought finance ministry's assistance in mitigating its liquidity shortfall that turns serious, officials said.
The state-run bank has been operating on loans, they said.
The bank sought intervention of the Financial Institution Division to ensure investments by different state entities in its term deposit schemes.
The financial assistance will help keep the specialised bank vibrant and stable, the officials cited.
The bank, according to a source, invested more than its capacity. For this, it is facing insufficient liquidity to keep its operations unimpeded.
In November, the bank wrote to finance ministry to take steps and request ministries, divisions and state entities to invest in its term deposit schemes.
Karmasangsthan Bank Managing Director Md Abul Hossain said, "We're running our activities through borrowing from different banks and agencies."
"Generally, the banks never operate on debts. We're borrowing from different banks and colleting term deposits from different entities for not getting required funds from the government."
Mr Hossain, however, said there is no sufficient fund for investing at an expected level.
A high official said some 13 scheduled banks, including four state-run banks, are providing paid-up capital to Karmasangsthan Bank.
"The demand for loan is rising. But Karmasangsthan Bank cannot disburse loans as expected because of fund shortages," another official of the bank told the FE.
"We've received a proposal from Karmasangsthan Bank seeking funds for operating its overall activities," a senior official of the banking division said.
Presently, the authorised capital of the bank is Tk 10 billion. Its paid-up capital stands at Tk 8.0 billion now, a senior Karmasangsthan official said.
Since its inception, Karmasangsthan Bank gave loans totalling over Tk 51.26 billion to over 0.55 million entrepreneurs as of last October.
The bank has contributed to generate employment for over 2.0 million people through various schemes.
Currently, it has 245 branches across the country.
According to sources, the bank made an operational profit of Tk 0.18 crore in the fiscal year 2016-17.
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