Bangladesh Bank Governor Mostaqueur Rahman has confirmed that the ongoing programme of bank consolidation will proceed, alongside stringent measures to recover defaulted loans. In addition, he has instructed that factories previously closed due to outstanding debts be reopened in compliance with regulations, signalling a dual focus on financial stability and economic revitalisation.
The announcement came during a meeting on Tuesday (3 March) with administrators of five banks currently undergoing merger. All administrators are Bangladesh Bank officials temporarily overseeing the management of the respective institutions.
Governor Rahman assumed office last Thursday, succeeding Ahsan H. Mansur, who was relieved of his duties. Mansur had implemented a series of reforms, including the consolidation of weak banks. Following changes in both government and central bank leadership, questions had arisen regarding the continuity of these reforms. However, Governor Rahman has made it clear that the agenda of structural reforms, including bank mergers, will continue without interruption.
During the meeting, the governor was briefed on the reasons for consolidation and the progress achieved so far. He emphasised the importance of:
Increasing deposits and strengthening capital within the merged banks
Taking all possible measures to recover non-performing loans
Reopening debt-laden factories in compliance with regulatory requirements
Governor Rahman expressed confidence that these initiatives would boost employment and business activity. Officials also indicated that managing directors for the consolidated banks would be appointed in the near future to ensure smooth operations.
Merged Banks Forming ‘Combined Islami Bank’
| Previous Banks | Previous Ownership | New Entity |
|---|---|---|
| Union Bank | S. Alam Group, Chattogram | Combined Islami Bank |
| First Security Islami Bank | S. Alam Group, Chattogram | Combined Islami Bank |
| Global Islami Bank | S. Alam Group, Chattogram | Combined Islami Bank |
| Social Islami Bank | S. Alam Group, Chattogram | Combined Islami Bank |
| EXIM Bank | Former NAB Chairman Nazrul Islam Majumdar | Combined Islami Bank |
The five banks—Union Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank—have now been merged to form the Combined Islami Bank. EXIM Bank was previously controlled by Nazrul Islam Majumdar, a former chairman of the Bangladesh Association of Banks, while the other four were controlled by Saiful Alam of the Chattogram-based S. Alam Group. Both Majumdar and Alam are known to have had close ties with former Prime Minister Sheikh Hasina.
The headquarters of the newly merged bank has been inaugurated at Senakalyan Bhaban, Motijheel, Dhaka, and the government has appointed a chairman and board of directors. The consolidation is expected to enhance governance, improve operational efficiency, and restore public confidence in these financial institutions.
Governor Rahman’s directives underline Bangladesh Bank’s commitment to maintaining financial discipline, recovering non-performing loans, and supporting industrial revival. They also indicate that structural reforms will continue under his leadership, with the broader goal of strengthening the country’s banking sector while promoting sustainable economic growth.