- Govt resumes merger process after weeks of uncertainties
The government has interviewed 10 senior bankers for the post of managing director of Sammilito Islami Bank, signalling fresh movement in the stalled merger process of the country’s five troubled Islamic banks after weeks of uncertainty.
Bangladesh Bank officials said the interviews were held over two days – 7 May and 10 May – following instructions from the finance ministry.
“We interviewed 10 candidates over the last couple of days,” a senior Bangladesh Bank official told TIMES on condition of anonymity.
The official, however, said the central bank does not have the final list of candidates, as the recruitment process is being coordinated by the finance ministry, which owns the merged bank.
The interviews come at a time when uncertainty surrounding Sammilito Islami Bank had intensified following amendments to the Bank Resolution Act, 2026, allowing former shareholders to regain conditional control of resolved banks.
The unconventional bank was formed last year through the merger of five severely liquidity-hit Shariah-based lenders – Social Islami Bank PLC, First Security Islami Bank PLC, Union Bank PLC, Global Islami Bank PLC and EXIM Bank PLC.
The doubts over the future of the merged bank deepened after former shareholders of Social Islami Bank formally applied to regain conditional control under the revised law.
The controversy centres on Section 18(Ka) of the Bank Resolution Act, 2026, passed by parliament on April 11.
The revised provision allows former shareholders to initially pay only 7.5 per cent of the government-injected funds to retake control of troubled banks, while the remaining 92.5 per cent can be repaid over two years with 10 per cent simple interest.
The amendment has sparked criticism from bankers, economists and policy observers who fear groups accused of looting public money from banks could regain ownership through the legal window.
Before the merger process began, Bangladesh Bank on November 5 last year declared the net asset value (NAV) of shares of the five banks at zero, citing deeply negative capital positions and officially classifying the lenders as non-viable.
Although the banks remain listed on the stock market, trading in their shares was suspended by the Bangladesh Securities and Exchange Commission.
Under the merger arrangement, the government injected Tk20,000 crore into Sammilito Islami Bank, while another Tk15,000 crore was supposed to come from the deposit insurance fund, creating a paid-up capital base of Tk35,000 crore – the largest among the country’s banks.
Officials said Tk10,000 crore of the government support was invested in Sukuk bonds, while the remaining Tk10,000 crore in cash still largely remains untouched in the merged bank’s current account with Bangladesh Bank.
