New Benefits for Customers of Five Banks

Bangladesh Bank has delivered reassuring news to millions of depositors of five merged banks, signalling a major step towards stabilising the country’s banking sector. The transfer of depositors’ accounts from the five individual banks to the newly formed Combined Islami Bank PLC is now in its final stages. Once completed, customers will be able to withdraw funds using their existing cheque books. Bangladesh Bank spokesperson Arif Hossain Khan recently confirmed these developments.

Several banks in Bangladesh have long faced severe liquidity crises due to mismanagement, irregularities, and rising non-performing loans. To address this, the central bank approved the merger of five of the most financially stressed Islamic banks, forming the Combined Islami Bank PLC. The banks involved in this consolidation are:

• EXIM Bank

• Social Islami Bank

• First Security Islami Bank

• Global Islami Bank

• Union Bank

According to Bangladesh Bank, the transfer of deposits is expected to be completed within the next week. Upon finalisation, all deposits from these five banks will automatically be moved to the accounts at Combined Islami Bank. Customers will initially be allowed to withdraw up to BDT 200,000 using their existing cheque books. All remaining deposits will remain fully secure and continue to earn profit at the prevailing rates.

Since the new bank is state-owned, it is expected to gradually restore depositor confidence, thereby reducing the pressure of mass withdrawals. Initially, the withdrawal limit will be BDT 200,000 per transaction. However, this limit is planned to be gradually increased. Customers with deposits below BDT 200,000 will be able to withdraw their entire balance at once, while those with higher balances can withdraw BDT 100,000 every three months for up to two years. Special provisions have been made for depositors over 60 years old or those suffering from serious illnesses, allowing unrestricted access to their funds.

The headquarters of Combined Islami Bank has been established at Senakalyan Bhaban in Dhaka. The bank’s paid-up capital has been fixed at BDT 35,000 crore, comprising BDT 20,000 crore from the government and BDT 15,000 crore from depositors’ contributions, with an authorised capital of BDT 40,000 crore.

According to Bangladesh Bank, the five merged banks currently serve approximately 7.5 million depositors, with total deposits amounting to BDT 1,42,000 crore. By contrast, total loans stand at BDT 1,93,000 crore, much of which is classified as non-performing. Nationwide, these banks operate 760 branches, 698 sub-branches, 511 agent banking outlets, and 975 ATMs.

The central bank expects that this merger will restore stability in the banking sector and rebuild public confidence in the financial system.