A writ petition has been filed in the High Court challenging the legality of the decision to merge five struggling private banks in Bangladesh.

On Tuesday, November 18, Barrister Mahshib Hossain filed the writ on behalf of ordinary investor Shahidul Islam. The petition names the Governor of Bangladesh Bank, the Finance Secretary, and other relevant authorities as respondents.

The writ seeks the court’s intervention to ensure protective measures for the existing shareholders of the five banks involved, requesting that their shares be allocated in the new bank, ‘Combined Islamic Bank’, in proportion to their current holdings.

Barrister Syed Mahshib Hossain, a Supreme Court lawyer, stated, “According to the Constitution of Bangladesh, my client has the full right to own property and conduct business. Like my client, other general investors have purchased shares of these banks that are listed on the stock exchange. However, the government is proceeding with the merger without allocating any shares to them in the proposed new bank, which infringes upon their fundamental rights.”

He added, “That is why my client has requested the court to order the government to allocate shares to him in the new bank.”

Previously, on October 9, the interim government’s advisory council approved a proposal to merge the five struggling banks: First Security Islamic Bank, Global Islamic Bank, Union Bank, EXIM Bank, and Social Islamic Bank, to create a new Shariah-compliant bank.

Two potential names have been proposed for the new bank: ‘United Islamic Bank’ and ‘Combined Islamic Bank’. It has been stated that the new bank will be run commercially and professionally.