The Operations of Combined Islamic Bank to Begin Next Week

The Governor of Bangladesh Bank, Ahsan H. Mansur, has confirmed that preparations to establish a new, more robust financial institution through the merger of five underperforming banks are nearly complete. The ambitious initiative, being implemented under the Bank Resolution Ordinance, is expected to see the new bank commence operations as early as next week.

Speaking at the opening session of the 4th Bangladesh Economic Conference 2025 on Saturday at the Pan Pacific Sonargaon Hotel in Dhaka, Governor Mansur highlighted the strategic importance of the merger. The conference, themed “The Future Path of the Economy and Political Commitments,” was organised by the Bangla daily Bonik Barta and brought together leading economists, business leaders, and policymakers.

Governor Mansur revealed that the new bank will boast a paid-up capital of 35,000 crore Taka, an unprecedented figure in Bangladesh’s banking sector. For comparison, the current maximum capital held by existing banks is approximately 1,500 crore Taka. He further emphasised that the government would provide 20,000 crore Taka in support to ensure the new entity is financially sound and capable of sustaining long-term growth.

“By merging the five weak banks, we are going to establish a stronger bank with greater operational capacity and financial stability,” Mr Mansur explained. The move is widely seen as a crucial step to consolidate the banking sector, strengthen public confidence, and prevent potential systemic risks associated with weak institutions.

The conference was attended by a distinguished gathering of experts and industry leaders, including A. K. Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS); A. K. Azad, Chairman and Managing Director of Ha-Meem Group; Jahangir Alam, President of the Bangladesh Steel Manufacturers Association (BSMA) and Chairman of GPH Group; and Masrur Arefin, Managing Director and CEO of City Bank.

Key Financial Data of the New Bank

Economists predict that this landmark merger will create a banking institution capable of competing with the largest domestic banks, improving liquidity, and facilitating increased lending to businesses and individuals. The initiative also signals the government’s commitment to stabilising the financial sector while promoting sustainable economic growth.