Appointment of Dr Mohammad Ayub Miah as Chairman of United Islami Bank Confirmed

Former senior secretary Dr Mohammad Ayub Miah has been appointed chairman of United Islami Bank PLC, following formal approval granted by Bangladesh Bank on 30 November. His appointment marks a significant milestone in the country’s most extensive banking consolidation initiative to date.

United Islami Bank PLC is the product of a strategic merger involving five financially distressed Shariah-based banks, a move initiated by the government and approved by the central bank to safeguard the financial system and depositors’ interests. The new bank has now received final licensing clearance and is preparing to begin full-scale operations.

The five institutions merged to form the new entity are:

• First Security Islami Bank

• Global Islami Bank

• Social Islami Bank

• EXIM Bank

• Union Bank

Despite repeated liquidity support from the central bank—amounting to billions of taka in emergency funds—the financial condition of the individual banks failed to improve. According to officials, the banks’ balance sheets had deteriorated sharply, with negative Net Asset Value (NAV) in almost all cases. Their share prices also experienced significant declines in the capital market, signalling weakening investor confidence.

With these challenges in view, the consolidation plan aims to restore financial stability, enhance governance, and strengthen risk management practices within the newly formed institution. The merger is expected to reduce operational redundancies, improve capital adequacy, and reinforce public confidence in Shariah-compliant banking services.

Bangladesh Bank has emphasised that United Islami Bank will operate under strict regulatory oversight, ensuring that the bank adopts modern risk-mitigation frameworks while maintaining Shariah adherence. The central bank also noted that all branches of the five former banks will continue operating under the unified identity, ensuring uninterrupted services for customers.

The initiative follows earlier developments on 9 November, when the central bank granted preliminary approval for the establishment of Sammilito Islami Bank after receiving a proposal from the Ministry of Finance. That move set the stage for a broader restructuring of the Islamic banking sector in Bangladesh, signalling the government’s determination to stabilise weaker institutions and promote sustainable sector-wide reform.

With Dr Miah at the helm—an experienced technocrat known for administrative reform and financial oversight—United Islami Bank is expected to navigate its transition and begin operations with a renewed strategic focus.

Overview of the United Islami Bank Merger

JD