Refunds to Begin for Depositors of Five Merged Islamic Banks
Dhaka, 26 December – Depositors of five financially troubled Islamic banks, recently merged to form the United Islamic Bank, will start receiving refunds from next week. Under the deposit insurance scheme, customers can initially withdraw up to BDT 200,000 in a single transaction.
A senior official from Bangladesh Bank confirmed on Thursday that procedural obstacles have been resolved, and withdrawals are expected to commence on Monday or Tuesday from the respective bank branches.
Banks Involved in the Merger
The five banks consolidated into 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 their entire balance at once.
Accounts with balances exceeding BDT 200,000 can withdraw up to BDT 100,000 every three months, for a maximum period of two years.
Special provisions allow depositors over 60 years old or those suffering from cancer or severe illnesses to withdraw any required amount immediately.
Customers with multiple accounts in the same bank may only withdraw from one account, while those with accounts across different banks can withdraw the permitted amount from each bank separately.
Background of the Crisis
Bangladesh Bank reports that, during the previous government’s tenure, influential groups allegedly secured large-scale fraudulent loans from over a dozen banks. Gradually, mismanagement and irregularities pushed these banks into deep financial distress, prompting the central bank to merge the five Islamic banks into a single entity.
| 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 |
To optimise operations, plans are in place to consolidate multiple branches in the same area into one or two locations. Staff salaries and allowances have already been reduced by 20% as part of cost-saving measures.
Bangladesh Bank emphasises that the merger and refund scheme aim to restore public confidence in the banking sector while ensuring depositors can recover their funds in a structured and orderly manner.