Five troubled Islamic banks are in the process of merging. First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank, and Union Bank are being consolidated into a new bank, ‘Sammlito Islami Bank PLC’. According to Bangladesh Bank sources, repayments to depositors could begin this week.

Each depositor will be able to reclaim up to Tk200,000 per account. The funds will come from the deposit insurance fund managed by the central bank. Depositors with balances above Tk200,000 will initially receive Tk200,000. The remaining balance will be addressed later by Bangladesh Bank, and a new profit rate will be determined.

Certain conditions apply. Even if a person has multiple accounts, repayment will be based on one account linked to a valid national ID. Only depositors with legitimate national identity cards are eligible. If an individual has accounts across the five banks, repayment will be provided for each account. Loans against deposits must be settled before repayment.

Bangladesh Bank estimates that Tk12,000 crore will be needed for repayments. The new bank’s paid-up capital is set at Tk35,000 crore, with Tk20,000 crore provided by the government and Tk15,000 crore from the deposit insurance fund. The authorised capital is Tk40,000 crore.

The new bank’s head office is located at Sena Kalyan Bhaban, Motijheel. The bank’s foundation will be strengthened through the appointment of skilled executives, establishment of the board of directors, and implementation of internationally standardised management policies.

Information:

AJ