Sonali Bank has decided to inject Tk 50 crore as fresh capital into its branch in Kolkata to support business activities.

The state lender has sent a proposal to the central bank seeking approval.

The management of Sonali Bank has decided to provide the capital support at a time when the state lender itself faced a capital shortfall of Tk 3,500 crore in 2016.

The Kolkata branch will receive fresh funds as it is performing well and making profit, said a senior executive of Sonali Bank.

The bank has continued to inject money into its overseas operations although it posted a net loss of Tk 818 crore last year, according to its unaudited report.

The bank also fell in provision shortfall of Tk 2,103 crore as of March this year.

In March, Sonali Bank transferred Tk 171 crore to its operation in the UK that is suffering from cash crunch.

The government also transferred Tk 178.41 crore to the Sonali Bank (UK) Ltd last July in proportion to its share.

The government owns 51 percent share in the bank's UK operation while the remainder is held by Sonali Bank.

According to Sonali Bank, the UK operation has not been able to raise its business exposure to more than 25 percent of its capital since December 2014 because of its “Third Country Jurisdiction” status.