New United Islamic Bank Plans to Allow Depositors to Withdraw Up to Two Lakh Taka

The country’s five Shariah-based Islamic banks will soon be merged and renamed the ‘United Islamic Bank’. All branch signboards will be updated promptly. Before the signboard change, Bangladesh Bank will announce when depositors can withdraw their funds.

Alongside the formation of the new bank, a special programme will be introduced. In the first phase, under the deposit insurance fund, each depositor will be allowed to withdraw up to two lakh taka. Withdrawals will be limited to one account per national identity card. The central bank has confirmed that preparations are underway to start withdrawals next week.

Last Sunday, at a board meeting chaired by Governor Ahsan H. Mansur, Bangladesh Bank granted 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.

Due to financial irregularities, these banks faced severe crises. Customers could not access their deposits, and employees did not receive full salaries. The new bank’s head office has opened at Sena Kalyan Bhaban in Motijheel. The paid-up capital is set at 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 stated that with the government fund in place and the new bank approved, there are no further obstacles to integration. Appointments for directors are ongoing. On Thursday, a press conference by the governor will provide full details on depositor withdrawals.

Although multiple accounts exist per identity card, initially, withdrawals of two lakh taka will be allowed from one account per card. Only individual depositors will benefit, with higher withdrawals phased in later.

Mohammad Ayub Mia, chairman of the 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 symbolise the restoration of depositor confidence.