A tense situation erupted at a Union Bank PLC branch in Khatungonj, Chattogram, on Sunday morning after depositors staged a protest demanding withdrawal of their savings and cancellation of the so-called “haircut” on deposits in five merged banks.
Around 12pm, the Union Bank branch was locked as the protest escalated.
More than a hundred customers entered the bank premises after banking hours began and voiced their anger. The depositors said they had long been protesting for cancellation of the haircut and restoration of normal transactions, along with return of their deposited money.
They said their movement had reached its final stage, yet their demands remained unmet. They also threatened to lock branches of the five merged banks and continue their agitation until their demands were fulfilled.
One depositor alleged, “I have over Tk 1 crore in my account, but cannot withdraw even a small amount when needed.” He said they had repeatedly tried to resolve the issue through discussions with bank authorities, but officials treated them as powerless customers. The depositors urged bank officials to extend cooperation in resolving the crisis.
The protesters claimed that the bank authorities were offering a partial repayment plan involving a “haircut” on principal deposits, which they rejected. They also alleged that the bank was trying to maintain normal operations by allowing limited transactions.
During the protest, depositors expressed frustration after failing to find the branch manager. They alleged that the manager had left the bank upon sensing the situation.
However, branch staff said the manager was on leave and the second-in-charge was currently abroad.
At one point, the agitated depositors forced bank officials out of their rooms and threatened to lock the branch. They warned that the movement would be expanded if an immediate solution was not provided.
Bank employees said they were unable to release large sums without instructions from the central bank or head office. They added that, under Bangladesh Bank directives, customers were currently allowed to withdraw up to Tk 2 lakh. They also said they had informed higher authorities about the situation.
The unrest in Khatungonj, a key commercial hub, has created uncertainty among businesspeople and general depositors. Concerned stakeholders said central bank intervention may be required to bring the situation under control.
After the Union Bank branch was locked around 12pm, the protesters moved to a nearby First Security Islami Bank branch and continued their demonstrations there.
Police from Kotwali Police Station reached the scene and are trying to bring the situation under control.
