Dr Mohammad Ayub Miah, a former senior secretary of the government, has been appointed chairman of the newly formed United Islami Bank. His appointment received official endorsement from Bangladesh Bank on 30 November.
The formation of United Islami Bank coincides with the central bank’s final approval of the merger of five financially distressed banks, which will now operate under a single consolidated entity. Bangladesh Bank has confirmed that the new institution is officially licensed and will commence full-scale operations this week.
The five banks incorporated into the merger are First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank. According to banking officials, these institutions struggled to achieve financial stability despite repeated injections of liquidity support from the central bank. Consequently, their share prices plummeted in the stock market, and the Net Asset Value (NAV) of almost all five banks turned negative, prompting concerns about systemic risk within the sector.
The consolidation aims to restore confidence in the banking system, protect depositors, and stabilise the financial standing of the affected institutions. By uniting under a single management structure and capital base, the new bank is expected to streamline operations, enhance governance, and strengthen overall liquidity.
Bangladesh Bank had previously granted preliminary approval for the creation of the new bank, initially named Sammilito Islami Bank, on 9 November, following an application from the Ministry of Finance. With regulatory approval now complete, the bank is poised to serve both retail and corporate clients, offering a full spectrum of Islamic banking services.
The following table summarises the banks merged into United Islami Bank PLC:
| Merged Bank Name | Financial Status Before Merger | Notable Challenges |
|---|---|---|
| First Security Islami Bank | Weak | Negative NAV, low liquidity |
| Global Islami Bank | Weak | Repeated liquidity support needed |
| Social Islami Bank | Weak | Share price decline |
| Exim Bank | Weak | Poor capital adequacy |
| Union Bank | Weak | Negative NAV, regulatory scrutiny |
Dr Miah, whose experience in public administration spans several decades, is expected to provide strategic oversight and leadership as the bank navigates its initial phase. Analysts suggest that the consolidation could serve as a model for stabilising other distressed institutions in Bangladesh’s banking sector.