Bangladesh, Nov. 12 -- A Tk 60-billion government equity injection into the scam-hit Islami Bank Bangladesh is under consideration to gain public control of the private commercial lender, sources say.

Advertisement The regulatory move comes as the lender grapples with massive financial losses, alleged fund embezzlement, non-performing investments and a severe erosion of its capital base, said central-bank sources.

Through a letter sent to the Financial Institutions Division (FID) on November 9, the central bank sought to know whether the government would agree to support the proposed capital enhancement of the private commercial bank.

The Banking Regulation and Policy Department of the Bangladesh Bank (BB) sent the letter to the FID, ...