A Social Islami Bank depositor, hoping to repay relatives he had borrowed from for his daughter’s wedding, had expected to do so with his savings, which had amounted to Tk30 lakh. But he was unable to make the withdrawal.
For such a large withdrawal, the bank said he would need to apply with supporting documents. When he questioned why paperwork was needed to access his own money, officials sought a written agreement for the loans, which he did not have with him at the time.
He would later submit the written application, after assurances were made from a bank official. “However, I am still worried,” he told TIMES.
Following the Awami League government’s fall on 5 August 2024, customers began withdrawing deposits from several banks weakened by loan scandals, eventually leaving them unable to meet withdrawal demands.
These banks – Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank – were subsequently merged into Sammilito Islami Bank.
Authorities announced in late August that normal withdrawals would resume 1 September. Yet, a month and a half later, depositors still face restrictions, while some who manage to recover their principal after repeated appeals receive no profit.
The depositor, encountered at Social Islami Bank’s Motijheel branch last Sunday, said customers had heard that withdrawing their entire deposits meant forfeiting profits accumulated over several years.
Withdrawals between Tk10 lakh and Tk15 lakh also require supporting documents: medical reports for treatment, registration papers for Hajj and purchase agreements for land transactions. But why would one need paperwork for money they had borrowed from friends and family?
The branch was filled with frustrated customers but most declined to speak, fearing further complications. Some said they had only received their principal after prolonged delays, while others remained uncertain about recovering deposits that had already matured.
Another depositor, M Abu Naser, applied for medical expenses but complained of lengthy waits even to submit applications, with no straightforward way to confirm acceptance.
A Social Islami Bank official, requesting anonymity, said, “It is not possible to return all deposits to all customers at once. Therefore, payments are being made gradually. There is a provision to give priority to applications supported by the necessary documents in cases of serious illness or other special emergencies.”
First Security Islami Bank depositor Mohammad Saiful Islam, who holds a savings account at its Mariamnagar branch in Rangunia, Chattogram, said he had repeatedly visited the bank without securing a withdrawal despite the 1 September announcement.
Another customer, Arif Hossain Rumel, had approximately Tk60 lakh deposited but could withdraw only 5 per cent, or Tk3 lakh, after submitting documents concerning his wife’s illness.
“I had hoped to withdraw at least 30 to 40 per cent of the money. But what else can I do?” he said.
Bangladesh Bank spokesperson Arif Hossain said the central bank had received no formal complaints about depositors being denied withdrawals.
“There may be exceptions in some places,” he said. “However, the relevant bank authorities will be given the necessary instructions to ensure that depositors do not face any harassment when withdrawing money and that the banks provide them with proper services and assistance.”
A Sammilito Islami Bank board official, also requesting anonymity, said, “For large withdrawals in emergencies, applications must be submitted with the necessary documents. Some people have tried to withdraw money using false information and transfer it to other banks, so verifying the applications is taking time.”
When asked about the earlier promise of “normal” operations when it came to withdrawals, he said, “This is a national crisis. We are doing everything we can.”
He claimed government and Bangladesh Bank initiatives were gradually restoring normalcy and urged customers to remain calm and retain confidence in the bank.
Depositors denied profits
Customers also complain that the government’s promise to avoid deposit “haircuts” remains unfulfilled.
During the interim government, then Bangladesh Bank Governor Ahsan H Mansur had said customers of the five banks would receive reduced deposit profits, often referred to as a “haircut”.
In January, Bangladesh Bank decided to deduct profits earned on deposits during 2024 and 2025 but reversed the decision on 10 September. Despite the relief, uncertainty remains over whether the deductions have been restored to all accounts.
First Security Islami Bank depositor Madina deposited Tk10 lakh for three years. Her deposit matured in November 2024, but she recovered only the principal last September after waiting almost two years.
“They said I could not get the profits from the deposit if I put it into an FDR,” she said.
Another customer, Arafat Islam, said his deducted profits had not been refunded, while his money remained stuck at the bank’s Bhuapur branch in Tangail.
Union Bank depositor Mostafa Kamal alleged that the bank was withholding stipulated profits, citing outdated software. He argued the amounts could instead be credited manually.
According to a Bangladesh Bank circular, depositors can withdraw their principal amounts if they forgo interest or accrued profit. “Around 180,000 customers have applied for this, but so far around 90,000 customers have come to withdraw their money,” it said.
Depositors of the five banks have organised regular protests over recent months and formed the Sammilito Islami Bank Depositors Association.
Sharmin Akhtar, a representative of its Chattogram committee, said nearly 84 lakh depositors continue to suffer.
“Returning only the principal amount is not enough. There must also be a guarantee that depositors will receive the profits they are owed, as with all other scheduled banks,” she said.
