Crisis-hit Global Islami Bank (GIB) has agreed to a merger and acquisition (M&A) plan initiated by Bangladesh Bank, while Social Islami Bank Limited (SIBL) has resisted the regulator’s bailout-driven consolidation push.
At a meeting on Thursday with Bangladesh Bank Governor Ahsan H Mansur and his deputies, SIBL directors requested more time to address their liquidity crunch instead of entering a merger.
Emerging from the talks, SIBL founding chairman Rezaul Haque said the bank aimed to stage a turnaround independently, insisting operational control should return to shareholder directors.
SIBL’s chairman, Mohammad Sadiqul Islam, blamed the S Alam Group for stripping over Tk6,000 crore in assets, worsening the bank’s liquidity stress.
In contrast, GIB chairman Mohammed Nurul Amin confirmed acceptance of the central bank’s resolution plan, noting it could involve merger, liquidation, or recapitalization. “It is up to the government, but depositors will benefit,” he said.
Amin revealed that of GIB’s Tk14,000 crore loan book, about Tk12,000 crore was lent to S Alam Group entities, most of which are in default with collateral covering less than a quarter of exposure.
The central bank has targeted five Shariah-based lenders – Union Bank, FSIB, EXIM, SIBL, and GIB – for restructuring under a forthcoming resolution ordinance. So far, only EXIM Bank and SIBL have opposed the move.
