State banks in severe cash crunch

State banks are now suffering from a severe liquidity crisis as they lost Tk 2,275 crore in deposits in just three months.
The money flew mainly due to an absence of a competitive interest rate on deposits and excessive credit expansion.
The Bangladesh Bank last week informed the government of the problem and asked it to take necessary steps.
The banks continued credit expansion, which caused the cash crunch, the BB told the government.