The High Court yesterday rejected a writ challenging the government’s decision to merge five financially troubled private Islamic banks into a single entity.

The bench, consisting of Justice Fahmida Quader and Justice Md Ashif Hasan, passed the order after a brief hearing. Barrister Sayed Mahsib Hossain, the petitioner’s lawyer, confirmed this to the media.

Additional Attorney General Mohammad Arshadur Rouf opposed the petition on behalf of Bangladesh Bank.

The writ, filed on 18 November by general investor Shahidul Islam, named the governor of Bangladesh Bank, the finance secretary, and other officials as respondents. The petitioner sought directives to protect the interests of general shareholders and ensure proportional share allocation in the proposed Sammilito Islami Bank following the merger of First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank.

During the hearing, the state argued that the merger was carried out under the Bank Resolution Ordinance 2025, which has no provision for shareholder compensation, rendering the petition without legal merit.

The writ further claimed that shareholder rights were not protected and that the merger proceeded despite the central bank being unprepared.

On 1 December, former senior secretary Dr Mohammad Ayub Miah was appointed chairman of Sammilito Islami Bank. Preliminary approval had been granted by Bangladesh Bank on 9 November following an application from the Ministry of Finance.