Depositors of five financially troubled Islamic banks, recently merged under the banner of United Islamic Bank, are set to begin receiving refunds from next week. Under the deposit insurance scheme, customers will initially be able to withdraw up to BDT 200,000 in a single transaction.
A senior official from Bangladesh Bank confirmed on Thursday that procedural hurdles have been removed, and withdrawals are expected to start on Monday or Tuesday next week from the respective branches.
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Banks Included in the Merger
The five banks consolidated to form the United Islamic Bank are:
EXIM Bank
Social Islami Bank
First Security Islami Bank
Global Islami Bank
Union Bank
Withdrawal Guidelines
Depositors with BDT 200,000 or less in their accounts can withdraw the entire balance at once.
Balances exceeding BDT 200,000 can be withdrawn at BDT 100,000 per quarter over a maximum period of two years.
Special provisions allow depositors over 60 years old and those with cancer or severe illnesses to withdraw any required amount immediately.
Customers with multiple accounts in the same bank can only withdraw from one account, but those holding accounts in different banks may withdraw the permitted amount from each bank separately.
Background of the Crisis
Bangladesh Bank reports that during the previous government’s tenure, certain influential groups allegedly obtained massive fraudulent loans from over a dozen banks. Mismanagement and irregularities gradually pushed these banks into deep financial distress, prompting the merger of the five Islamic banks.
Capital and Structure of the United Islamic Bank
| Parameter | Amount (BDT) |
|---|---|
| Paid-up Capital | 35,000 crore |
| Government Share | 20,000 crore |
| Depositors’ Contribution | 15,000 crore |
| Authorised Capital | 40,000 crore |
| Head Office | Sena Kalyan Bhaban, Dhaka |
Deposits and Loans
| Parameter | Value |
|---|---|
| Total Depositors | 7.5 million |
| Total Deposits | 142,000 crore |
| Total Loans | 193,000 crore |
| Branch Network | 760 branches |
| Sub-branches | 698 |
| Agent Banking Outlets | 511 |
| ATMs | 975 |
Plans are underway to consolidate multiple branches in the same locality into one or two to cut costs. Staff salaries and allowances have already been reduced by 20% as part of operational cost-saving measures.
Bangladesh Bank stresses that the merger and refund scheme are intended to restore public confidence in the banking sector while ensuring depositors can recover their funds in an orderly and structured manner.