Dhaka, June 11 -- In a major financial intervention, the government has earmarked Tk 40,000 crore in the proposed national budget for FY 2026-27 to bail out and stabilize the struggling banking sector.

The massive financial package comes as a desperate measure to salvage several weak and distressed commercial banks and Non-Bank financial Institutions (NBFIs) currently grappling with severe liquidity crunches, rising non-performing loans (NPLs), and eroded capital adequacy.

According to Ministry of Finance sources, the allocation will be utilized to inject fresh capital, stabilize liquidity frameworks, and restore public confidence in the financial system. Economists and sector experts view this as one of the largest state-backed banking...