Limited Refunds for Customers of Five Merged Islamic Banks

Under the supervision of Bangladesh Bank, depositors of five troubled Islamic banks will be able to reclaim their funds. The banks involved are First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank, and Union Bank. These banks are being merged to form a new entity, ‘Sammlito Islami Bank PLC’. Repayments could begin this week.

Each depositor will be eligible for a maximum refund of Tk200,000 per account. The funds will be disbursed from the deposit insurance fund managed by Bangladesh Bank. Depositors with balances above Tk200,000 will initially receive Tk200,000. The remaining amount will be determined later by Bangladesh Bank, with a new profit rate applied. This arrangement primarily aims to address the urgent needs of smaller depositors.

Certain conditions apply. Even if a person holds multiple accounts, repayment will be based on one account linked to a valid national ID. Only depositors with legitimate national identity cards are eligible. Individuals with accounts across the five banks will receive refunds for each account. Any loans against deposits must be settled before repayment.

Bangladesh Bank estimates that a total of Tk12,000 crore will be needed for the repayments. The paid-up capital of the new bank is set at Tk35,000 crore, with Tk20,000 crore provided by the government and Tk15,000 crore from the deposit insurance fund. The authorised capital has been set at Tk40,000 crore.

The new bank’s head office has been established at Sena Kalyan Bhaban, Motijheel. To strengthen its foundation, the bank will appoint skilled and experienced top executives, establish a board of directors, and implement internationally standardised management policies.

Information:

AJ