Sammilito Islami Bank Merger Declares Shares Nil

Bangladesh Bank has directed five Shariah-based banks, recently merged to form Sammilito Islami Bank PLC, to declare the shares of their existing shareholders as zero, following a review that found the net asset value (NAV) of the shares to be negative. The affected banks are First Security Islami, Social Islami, Global Islami, Union, and EXIM, according to a letter sent today by the central bank.

Executive Director and spokesperson Areif Hossain Khan confirmed that the directive was issued under the Bank Resolution Ordinance 2025, requiring all shares of the five lenders to be officially written down to zero. “An assessment revealed that the share value of these banks was negative,” he explained, adding, “Consequently, shareholders’ shares have now been reduced to zero.”

Earlier, in November, Bangladesh Bank Governor Ahsan H Mansur had announced that shareholders of the merged banks would not retain any stake in the new entity, as the NAV per share had already fallen between Tk 350 and Tk 420. “No shareholder of the merged banks will receive anything,” Mansur stated, emphasising that these holdings carry zero liability.

The move has inflicted substantial losses on shareholders, amounting to approximately Tk 4,500 crore at face value—the value originally assigned when the shares were issued. In terms of market value, the total loss is estimated at Tk 1,022 crore, reflecting that the shares were trading significantly below face value prior to the merger. Following Bangladesh Bank’s directive, trading of the shares on the Dhaka and Chattogram Stock Exchanges was suspended last month.

On 30 November, Bangladesh Bank granted the final licence for Sammilito Islami Bank, making it the country’s largest Shariah-based state-owned lender. The central bank emphasised that the merger and subsequent approval are part of a broader banking sector reform programme, launched in September 2024, aimed at restoring governance, ensuring accountability, and instilling financial discipline.

The authorised capital of Sammilito Islami Bank will be Tk 40,000 crore, comprising 4,000 crore shares at Tk 10 each. The paid-up capital will be Tk 35,000 crore, contributed in three categories: government funds, converted permanent deposits from other depositors, and institutional deposits from eligible entities.

Capital Structure of Sammilito Islami Bank PLC

Shareholders of the merged banks have thus lost hundreds of crores, while Bangladesh Bank maintains that the restructuring is essential to stabilise the banking sector, protect depositors, and ensure a disciplined and accountable financial system.