Bangladesh Bank has finalised a phased refund scheme for depositors of the five crisis-hit Islamic banks merged into Sammilito Islami Bank, allowing an initial cash-out of up to Tk2 lakh – while significantly relaxing the withdrawal limits for elderly customers above 60 and those suffering from cancer or other critical illnesses, who will be permitted to take out any amount they require.
The draft scheme was approved at a key meeting on Tuesday at the central bank, chaired by Governor Ahsan H Mansur and attended by Mohammad Ayub Miah, chairman of the newly formed Sammilito Islami Bank. Four deputy governors, the five banks’ administrators and senior officials of relevant departments were also present.
A Bangladesh Bank official who attended the meeting said the refund process has become complicated because the new bank’s database is not yet created and no managing director has been appointed, creating a legal obstacle. Despite this, the governor instructed officials to start returning depositors’ money within December.
Under the draft scheme, depositors with Tk2 lakh or less will be allowed to withdraw their entire balance in one go, funded through the Deposit Insurance Fund. Those with higher balances will be able to withdraw up to Tk1 lakh every three months for two years.
For customers above 60 or those battling cancer or other critical illnesses, this restriction will not apply; they will be allowed to withdraw funds as needed.
Central bank officials urged depositors not to withdraw money unnecessarily, noting that the newly created bank is structurally sound and that phased withdrawals are meant to rebuild trust and restore stability across the banking sector.
To access the scheme, depositors must have a valid account opened against their national identity card. If a person has multiple accounts within one bank, the benefit will apply to only one. However, if they have separate accounts across the five former banks, withdrawals can be made individually from each. Depositors with outstanding loans will not be allowed to withdraw until their loans are settled.
During the last Awami League government, several influential groups withdrew vast sums through fraudulent schemes across more than a dozen banks, pushing many of them toward insolvency. In response, Bangladesh Bank approved the merger of the five weak institutions – EXIM, Social Islami, First Security Islami, Global Islami and Union Bank – into Sammilito Islami Bank.
The paid-up capital of the new bank has been set at Tk35,000 crore, with the government contributing Tk20,000 crore and the remaining Tk15,000 crore coming from depositor shares. Authorised capital has been fixed at Tk40,000 crore.
According to central bank data, the five banks collectively hold deposits of around Tk1,42,000 crore belonging to 75 lakh customers. Their outstanding loans amount to Tk1,93,000 crore, much of which has already become non-performing.
Nationwide, the merged banks have 760 branches, 698 sub-branches, 511 agent banking outlets and 975 ATMs. After consolidation, overlapping branches in the same area will be merged into one or two. To cut operating costs, employee salaries and allowances have already been reduced by 20 percent.
The new bank has taken temporary office space at Sena Kalyan Bhaban in Motijheel, and a current account has been opened at Bangladesh Bank’s Motijheel office. The board of directors and managing director will be appointed soon. Earlier, on 5 November, the central bank appointed administrators and declared the shares of the five banks void following completion of required procedures.
