Depositors of the newly formed Sammilito Islami Bank, created through the merger of five Islamic banks, will receive profit at market rates of up to 9.5 per cent, according to Bangladesh Bank Governor Ahsan H Mansur.
“It has been decided that all depositors will receive profit at market rates. This will apply to savings accounts with tenures of one year or more,” Mansur told journalists at an emergency briefing at the central bank at 12:30pm on Thursday.
The decision to pay this profit takes effect from January. The profit accrued for January will be paid in February, he said.
According to the governor, depositors will receive profit at a rate of 4 per cent only for 2024 and 2025. Those whose funds cannot be repaid immediately will receive profit of up to 9.5 per cent on their deposits from this month.
Mansur also said that accounts under monthly schemes would receive profit every month.
“Customers will be able to withdraw the full amount of the monthly profit,” he added.
The governor said profit for the previous month would be paid at the beginning of each month.
“It is not possible to return all depositors’ money at once. If you open a sluice gate all at once, it causes flooding. Water has to be released gradually. Likewise, we cannot repay all funds at once and must do so in a controlled manner,” he said.
The governor arranged the press conference after receiving complaints that certain individuals and bankers were spreading “provocation, rumours and propaganda” regarding Sammilito Islami Bank.
Describing the profit payments to depositors as an act of “compassion” by the government, he said that under international norms, no profit would normally be payable.
“But the government is providing this as a gesture of goodwill,” he added.
The government decided to merge Shariah-based private banks EXIM Bank, First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank after they fell into financial distress due to loan irregularities.
On 1 December, Bangladesh Bank issued a final licence in favour of the government to form a new bank under the name Sammilito Islami Bank through the merger.
On 14 January, Mansur initially decided that customers of these banks would receive no profit for 2024 and 2025 under a “haircut” approach.
Amid criticism and protests, the decision was reversed a week later and a 4 per cent profit for two years was announced instead.
The governor said paying profit at the 4 per cent rate would cost Tk4,500 crore. However, protesters have not accepted the 4 per cent decision.
Referring to the issue, the governor said some people are being paid to run provocative propaganda and spread rumours about Sammilito Islami Bank.
“This will not continue for long,” he added.
For depositors of nine non-bank financial institutions that are set to be liquidated, only the principal amount will be repaid, with no interest or profit, the governor said.
Asked about videos circulating on social media showing disorder at some branches in Dhaka and Chattogram, the governor said the matter is under observation.
“Law enforcement assistance will be sought if necessary,” he added.
He also blamed “their ill-motivated activities” for the delay in launching Sammilito Islami Bank on the previously scheduled date.
Dismissing reports that he had sought leave for more than a month as rumours, Mansur said that as he has not applied for any leave, no leave has been approved.
“Besides, I have no intention of taking leave,” he added.
