DHAKA — A remarkable shift in customer sentiment is offering a crucial lifeline to the newly formed Combined Islamic Bank. Despite long-delayed access to their savings finally being restored, the expected rush by depositors to drain their accounts has failed to materialise. Instead, a significant majority of customers are choosing to leave their funds intact, while fresh deposits begin to trickle back into the institution.
According to internal bank figures covering the period between 1 and 10 September, 124,877 customers lodged applications to withdraw a collective 5,511 crore taka. However, only 35,907 applicants actually drew out their funds, totaling 1,431 crore taka. This indicates that roughly 71 per cent of those who formally requested their money have ultimately opted to keep it in the bank.
The initial days of the withdrawal window saw heightened activity before the momentum noticeably eased. On 1 September, 18,046 customers requested withdrawals amounting to 1,325 crore taka, yet by 7 September, only 8,125 of those applicants collected a combined 319 crore taka. A similar pattern emerged the following day when 19,613 customers applied for 1,016 crore taka, but just 7,234 individuals withdrew 340 crore taka on 8 September. Subsequent payouts stood at 381 crore taka on 9 September and 391 crore taka on 10 September.
Paralleling this restraint, new money is entering the system. Over a four-day stretch from 7 to 10 September, the bank absorbed 894 crore taka in fresh deposits. Daily inflows grew steadily: 141 crore taka on 7 September, 195 crore taka on 8 September, 244 crore taka on 9 September, and 314 crore taka on 10 September.
Md Abedur Rahman Sikder, Managing Director of Combined Islamic Bank, noted that branch staff reaching out to customers were frequently told that depositors no longer felt the urgency to pull their cash. He highlighted that core operational channels—including Real-Time Gross Settlement (RTGS), the Bangladesh Financial Exchange Network (BEFTN), and standard clearing services—are once again fully operational, signaling a return to routine banking.
Arif Hossain Khan, spokesperson and Executive Director of Bangladesh Bank, observed that restoring public confidence was the primary obstacle facing the consolidated entity, noting that the muted withdrawal pressure has significantly eased immediate burdens on the central bank.
The institution was forged through the merger of five troubled entities: EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank. To bolster the consolidated bank’s balance sheet, Bangladesh Bank originally provided a special liquidity support facility of 5,000 crore taka. Although regulators initially proposed a “haircut” on deposits—which would have forced customers to forfeit a portion of their holdings—the decision was discarded in favour of allowing individual depositors full access to their funds starting 7 September.
Despite these promising early indicators, sector analysts warn against premature optimism. Combined Islamic Bank inherits a staggering 16,000 employees, 759 full branches, and nearly 700 sub-branches from its constituent lenders. Streamlining this vast physical and human infrastructure while curbing operational overheads presents an immense administrative hurdle.
More critically, the non-performing loan (NPL) portfolio remains a heavy shadow over the institution’s future. By the end of June, default loans across the five merged banks had escalated to 1,69,850 crore taka. Recovering these bad debts, instituting strict credit discipline, and enforcing rigorous corporate governance will ultimately dictate whether this initial flash of consumer confidence matures into long-term financial stability.
