Bangladesh Bank has injected an unprecedented Tk 525 billion into 12 financially weak banks by printing new money, despite adhering to a tight monetary policy, according to central bank data released Saturday.

Of the total support, Tk 330 billion was provided as demand loans to 10 banks to help repay customer deposits, while Tk 190 billion in current account deficits across nine banks was converted into demand loans.

First Security Islami Bank received the largest bailout at Tk 142 billion. Other recipients include Social Islami Bank, Islami Bank Bangladesh, National Bank, EXIM Bank, Global Islami Bank, AB Bank, Bangladesh Commerce Bank Ltd (BCBL), Investment Corporation of Bangladesh (ICB), Basic Bank, and Padma Bank.

Governor Dr Ahsan H Mansur confirmed plans to merge five private Islamic banks “very soon,” regardless of the upcoming elections. “This is an ongoing process, and we expect the next government to continue it,” he said.

Six banks, flagged for irregularities and loan fraud, are set to be merged by July. These banks will temporarily be under state control, after which their shares will be offered to public and international investors following restructuring.

The extraordinary liquidity support raises concerns over inflationary risks but underscores the central bank’s urgency in addressing deep-rooted weaknesses in the financial sector.