Special Announcement for Customers of Five Banks

Bangladesh Bank has delivered reassuring news for millions of depositors of five merged banks, signalling a significant step towards stabilising the nation’s Islamic banking sector. The accounts of depositors from these banks are now in the final stages of being transferred to the newly formed Combined Islamic Bank PLC. Once this process is completed, customers will be able to withdraw funds using their existing cheque books. This information was confirmed by Bangladesh Bank spokesperson Arif Hossain Khan.

The merger comes after several banks in the country suffered from chronic liquidity crises due to mismanagement, irregularities, and rising non-performing loans. To address these challenges, Bangladesh Bank approved the consolidation of the five most troubled Islamic banks into the Combined Islamic Bank PLC. The banks involved are:

1. EXIM Bank

2. Social Islami Bank

3. First Security Islami Bank

4. Global Islami Bank

5. Union Bank

According to Bangladesh Bank, the transfer of deposits is expected to be completed by next week. Once finalised, all deposits from these banks will be automatically migrated to accounts at the new Combined Islamic Bank. Customers will initially be able to withdraw up to BDT 200,000 using their old cheque books. Remaining deposits will remain fully secure and continue to accrue profit at standard rates.

Spokesperson Arif Hossain Khan emphasised that, as a state-owned institution, the new bank is expected to gradually restore public confidence, thereby reducing the pressure on large-scale withdrawals. Initially, withdrawal limits are set at BDT 200,000 per transaction, with plans to gradually increase these limits. Depositors with balances below BDT 200,000 may withdraw their full amount immediately, while those with higher balances can withdraw BDT 100,000 every three months for up to two years. Exceptions have been made for customers over 60 years old or those with serious illnesses, allowing them to withdraw any amount if necessary.

The head office of the Combined Islamic Bank has been established in Senakalyan Bhaban, Dhaka. The bank’s paid-up capital is set at BDT 35,000 crore, with BDT 20,000 crore provided by the government and BDT 15,000 crore contributed by depositors’ shares. The authorised capital is BDT 40,000 crore.

Key Figures of Merged Banks:

Bangladesh Bank anticipates that this consolidation will bring stability to the banking sector and restore public trust in financial institutions.