Five Shariah-based Islamic banks in the country will be merged and renamed as the ‘United Islamic Bank’. Branch signboards will be updated swiftly. Before the signboard change, Bangladesh Bank will announce when depositors can access their funds.
According to Bangladesh Bank sources, a special programme will be launched alongside the establishment of the new bank. In the initial phase, under the deposit insurance fund, each depositor will be allowed to withdraw up to two lakh taka. Withdrawals will be allowed from one account per national identity card. The central bank has stated that all preparations are in place to start fund withdrawals next week.
Last Sunday, at a board meeting chaired by Governor Ahsan H. Mansur, Bangladesh Bank granted final approval for the ‘United Islamic Bank PLC’. The bank will merge First Security Islamic Bank, Global Islamic Bank, Social Islamic Bank, Exim Bank and Union Bank. Exim Bank’s chairman was Nazrul Islam Majumdar, while the other four were under the control of the Chittagong-based S Alam Group.
All five banks faced severe financial crises due to unchecked corruption. Customers could not withdraw deposits, and employees did not receive full salaries. The new bank’s head office has been established at Sena Kalyan Bhaban in Motijheel. The paid-up capital is 35,000 crore taka, with 20,000 crore from the government and 15,000 crore from depositors’ shares. The authorised capital is 40,000 crore taka.
Bangladesh Bank officials have stated that with government funds received and new bank approval granted, there are no further obstacles to integration. Appointments for directors, managing director and company secretary are ongoing. On Thursday, a press conference by the governor will provide full details on depositor fund withdrawals.
Initially, despite multiple accounts, withdrawals of two lakh taka will be allowed from one account per national identity card. Only individual depositors will benefit, with higher withdrawal limits phased in later.
Mohammad Ayub Mia, chairman of United Islamic Bank PLC, met with the governor and inspected the head office. He stated that the government-owned Islamic bank is good news for the country and will act as a symbol of restored depositor confidence.