Bangladesh Bank has finalised a phased refund scheme for depositors of five crisis-hit Islamic banks merged into Sammilito Islami Bank. The scheme allows an initial withdrawal of up to Tk2 lakh and significantly relaxes limits for depositors aged over 60 or suffering from critical illnesses like cancer, who may withdraw any amount required.
The draft scheme was approved at a meeting on Tuesday chaired by central bank Governor Ahsan H Mansur and attended by Mohammad Ayub Miah, chairman of the newly formed Sammilito Islami Bank. Four deputy governors, the administrators of the five banks, and senior officials were also present.
A Bangladesh Bank official said the refund process is complicated by the lack of a completed database for the new bank and the absence of an appointed managing director, creating a legal obstacle. Despite this, the governor instructed officials to begin returning depositors’ money within December.
Under the draft, depositors with Tk2 lakh or less may withdraw their entire balance at once, funded through the Deposit Insurance Fund. Those with higher balances can withdraw up to Tk1 lakh every three months for two years. For customers above 60 or those with cancer or other critical illnesses, this restriction will not apply, and they may withdraw funds as needed.
Central bank officials urged depositors not to withdraw money unnecessarily, stating the new bank is structurally sound and that phased withdrawals aim to rebuild trust and restore sector stability. To access the scheme, depositors must have a valid account linked to their national identity card. If a person holds multiple accounts within one former bank, the benefit applies to only one account, but separate accounts across the five former banks allow individual withdrawals from each. Depositors with outstanding loans cannot withdraw until their loans are settled.
During the previous Awami League government, extensive withdrawals through fraudulent schemes across more than a dozen banks pushed many toward insolvency. In response, Bangladesh Bank approved merging five weak institutions—EXIM, Social Islami, First Security Islami, Global Islami, and Union Bank—into Sammilito Islami Bank.
The new bank’s paid-up capital is set at Tk35,000 crore, with the government contributing Tk20,000 crore and the remaining Tk15,000 crore from depository shares. Authorised capital is fixed at Tk40,000 crore. Central bank data shows the five banks collectively hold about Tk1.42 lakh crore in deposits from 75 lakh customers. Their outstanding loans amount to Tk1.93 lakh crore, much of it is non-performing.
Nationwide, the merged banks have 760 branches, 698 sub-branches, 511 agent banking outlets, and 975 ATMs. Overlapping branches in the same area will be consolidated. Employee salaries and allowances have already been cut by 20 per cent to reduce operating costs.
The new bank has temporary offices at Sena Kalyan Bhaban in Motijheel and has opened a current account 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 voided the shares of the five banks after completing required procedures.
