Dhaka, Feb. 2 -- State-owned Palli Sanchay Bank (PSB), a low-cost lender for micro and small farms, has sought a special government allocation of Tk 100 billion to meet its liquidity shortfall, ensure smooth operations and mitigate poverty.

The bank's chairman recently requested the Financial Institutions Division (FID) of the Ministry of Finance to take steps to provide the fund in 10 equal instalments over a period of 10 years to 2032. The FID forwarded the request to the finance division, sources said.

"We received a letter on the issue from the FID and are working on it," a senior official at the finance division said.

A high-profile meeting of the government held in August 2021 had recommended providing the bank with a special min...