Dhaka, July 18 -- Fund funnelling from the central bank into commercial banks in Bangladesh through repo instrument hits a record high of over Tk 1.45 trillion in June, indicating their severe liquidity crunch.

Deposit growth remains slow amid higher non-performing loan (NPL) regime following past misrule in the banking sector while government bank borrowing also ballooned to make up for revenue deficit, bankers and money-market analysts say about the banks' desperate need for liquidity feeding.

They say the volume of commercial lenders' borrowing through repo window of the Bangladesh Bank (BB) continues ballooning to meet their local-currency obligations.

According to the latest data available with the BB, the country's scheduled bank...