Name Finalized for Merged Banks: “Sammilito Islami Bank” 

The government has taken the initiative to merge five private-sector Islamic banks into a single entity. The new bank has been officially named “Sammilito Islami Bank” (Integrated Islamic Bank). The assets and liabilities of the five banks will be combined under this new institution.

The Ministry of Finance has already begun the process of establishing the new bank. Ownership will remain under the Finance Division on behalf of the government. The plan includes first obtaining a trade license under the name Sammilito Islami Bank, then registering the entity with the Registrar of Joint Stock Companies and Firms (RJSC), and finally applying to the Bangladesh Bank for a banking business license.

Following government approval, the Bangladesh Bank, the Ministry of Finance, and the Advisory Council have all given consent to the merger proposal. Due to widespread irregularities and mismanagement during the Awami League government’s tenure, these five Islamic banks had become financially weak, prompting the decision to form a stronger, unified bank.

The banks to be merged are — First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank (SIBL), and EXIM Bank. At present, these banks are struggling to return depositors’ money and to maintain regular operations.

Initially, the central bank proposed naming the new institution “United Islami Bank.” However, during a meeting of the Advisory Council, an alternative name — “Sammilito Islami Bank” — was suggested and ultimately approved as the final name.

According to sources, the new bank will have a paid-up capital of around Tk 35,000 crore and an authorized capital of Tk 40,000 crore, making it the largest bank in Bangladesh in terms of capital. The government will contribute Tk 20,000 crore, half of which (Tk 10,000 crore) will be provided in cash, while the remaining amount will be raised from the market through Sukuk bonds. The other Tk 15,000 crore will come from the Deposit Insurance Fund and by offering shares to corporate depositors.

A large portion of this capital will be used to repay the outstanding deposits owed by the five merged banks. Deposits up to Tk 2 lakh will be settled from the Deposit Insurance Fund, while larger deposits will be repaid gradually.

The Bangladesh Bank expects that deposit inflows in the banking sector, which have recently begun to increase, will continue to rise once this new state-backed Islamic bank begins operations. The new bank is also expected to play an important role in boosting remittance inflows from expatriate Bangladeshis.