Bank Merger: Can Customers Continue Using Existing Cheques and Branches?

Bangladesh Bank Governor Ahsan H Mansur has recently assured the public that the process of returning depositors’ funds will begin within a month, as the country prepares for one of its most significant banking consolidations in recent history.

Five Shariah-based banks are set to merge into a single institution named Sammilito Islamic Bank, which has already received a Letter of Intent from the central bank and name approval from the Office of the Registrar of Joint Stock Companies and Firms. Unsurprisingly, customers have been raising numerous questions about access to their money, the validity of existing chequebooks, and the practicalities of banking during the transition.

Customer Access to Funds

According to Bangladesh Bank officials, Sammilito Islamic Bank is expected to receive its licence within the next two weeks. Once operational, customers’ current and savings accounts will automatically migrate to the new bank, allowing continued access to funds through existing branches.

Governor Mansur explained that depositors holding up to Tk2 lakh will be able to withdraw their full balance immediately. Larger deposits will follow a phased withdrawal plan, to be published through an official government gazette. All depositors will receive a market-based profit rate, calculated according to prevailing market conditions once the new bank commences operations.

Bank administrators have clarified how this will work in practice. For example, a customer with Tk20 lakh will see the full amount transferred to the new bank, but only Tk2 lakh may be withdrawn straight away. The remaining balance will be released in instalments over one to two years, with profit applied during the holding period. Officials noted that many customers may opt to keep their funds deposited if the profit rate is attractive.

Use of Existing Chequebooks

Customers will still be able to use their existing cheques during the transition. Issuing new chequebooks immediately to millions of account holders is not feasible, so cheques presented at current branches will continue to be honoured under the authority of Sammilito Islamic Bank.

Capital Structure and Depositor Coverage

Institutional depositors will receive shares valued at approximately Tk15,000 crore in the new bank. In its first phase, deposits up to Tk2 lakh will be reimbursed through the Deposit Insurance Trust Fund, which holds around Tk18,000 crore.

Key Figures from the Merger

Governance and Management of the New Bank

The new board will be chaired by Nazma Mobarak, Secretary of the Financial Institutions Division. It will include seven directors—five government representatives and two from the private sector. As the state is supplying the majority of the capital, ministry officials will dominate the board initially, though it is expected to be restructured within a year to include experienced banking and business professionals.

Merger Timeline and Operational Continuity

The full merger process is expected to take between one and two years. Administrators will focus on safeguarding IT systems, maintaining day-to-day services, evaluating staff capacity, and rationalising the branch network. Despite the scale of the restructuring, the central bank has stressed that all essential banking activities—payments, import-export transactions, deposits, cheque clearing, and remittances—will continue uninterrupted under the existing bank names until the transition is complete.

Governor Mansur reiterated that depositors’ funds remain secure, emphasising that Sammilito Islamic Bank will be stronger than any of the merging institutions, providing a stable foundation for Shariah-compliant banking in Bangladesh.