Bangladesh Bank Governor Ahsan H Mansur has directed that all processes be completed to ensure the return of deposits to customers of five banks by December, saying concrete steps must be taken to guarantee repayment within the deadline.
The instruction was issued at the first board meeting of Sammilito Islami Bank held with the governor. The inaugural meeting took place on Wednesday and was chaired by the bank’s chairman Mohammad Ayub Mia.
At the meeting, directors were first briefed on the steps taken so far regarding Sammilito Islami Bank under the resolution framework. The governor then asked officials to swiftly complete IT system integration to ensure there are no technical obstacles to repaying deposits or taking other necessary measures.
He also directed the formulation of a single, integrated HR policy for the newly formed bank. As the five merged banks currently have differences in designations, grades and promotion systems, these must be brought under a unified framework. A common designation structure, transparent promotion system and uniform pay-grade structure must be introduced for officials of the five banks, with Bangladesh Bank overseeing implementation.
The meeting reiterated that all procedures must be completed to return depositors’ funds by December, and instructed that customers must be able to withdraw money using previously issued cheques.
It was also stated that Sammilito Islami Bank will be formally inaugurated in January, but depositors will receive their funds before the launch.
Board members present expressed agreement with the governor and pledged that Sammilito Islami Bank would give the highest priority to protecting depositors’ interests.
During the tenure of the previous Awami League government, several influential groups withdrew large volumes of loans through fraud from more than a dozen banks, pushing the institutions into deep crisis under the weight of irregularities and loan scandals. Against this backdrop, the central bank approved the merger of five troubled banks to form Sammilito Islami Bank. The five banks are Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.
An initial office for Sammilito Islami Bank has been taken at Sena Kalyan Bhaban in Motijheel, Dhaka. A current account has already been opened at Bangladesh Bank’s Motijheel branch. Earlier, on November 5, the central bank appointed administrators and declared the banks’ shares void after completing the required procedures.
