The founders of Social Islami Bank PLC (SIBL) have strongly opposed the planned merger of the bank, accusing former intelligence officials of coercion and questioning the legitimacy of the government’s actions in the process.
At a press conference in Dhaka on Monday, SIBL’s founding chairman Sultan Mahmud Chowdhury slammed the regulators’ move to merge weak Shariah-based lenders, stating, “Who is this government? Let an elected one come, then we will fight them.”
Former chairman Md Rezaul Haque alleged that Major General Mohammad Saiful Abedin, then-head of Directorate General of Forces Intelligence (DGFI), forced him to resign at gunpoint, acting on direct orders from Prime Minister Sheikh Hasina and her sister Sheikh Rehana. These allegations echo similar claims made by former Chief Justice S.K. Sinha, who accused Abedin of pressuring him to resign.
The press briefing, attended by four founding directors and several shareholders, also denounced the central bank’s plan to merge SIBL, First Security Islami Bank Limited (FSIBL), Union Bank, Global Islami Bank, and EXIM Bank into a single entity. Last week, the High Court issued a rule questioning the legality of the Bank Resolution Ordinance 2025, which underpins the merger.
Sultan Mahmud Chowdhury stated, “The court has ruled in our favor. If the central bank wants to merge banks, it must first secure approval from the Appellate Division.” He confirmed that a writ petition had been filed.
Bangladesh Bank, the central bank of Bangladesh, has warned of potential legal battles, with depositors also expected to take legal action. Md Arief Hossain Khan, a spokesperson for the central bank, remarked, “The government will not intervene. Bangladesh Bank must fight this legally,” adding that entrepreneurs who provide sufficient capital to restore solvency would not be forced into mergers.
On Sunday, the government approved the merger plan, which requires Tk 352 billion in funding—Tk 202 billion from the state, Tk 75 billion from the deposit insurance trust, and the remaining amount through converting institutional deposits into equity.
At the press conference, the SIBL founders reiterated their commitment to recapitalizing the bank on their own. “Whatever it takes, we’ll pay Bangladesh Bank back through business,” Sultan Mahmud Chowdhury declared.
Md Rezaul Haque added that the Islamic Development Bank and other foreign investors had shown interest in providing fresh capital.
Former director Asaduzzaman, representing expatriate shareholders, expressed frustration, saying, “We built this bank with our own remittances. The previous government snatched it from us. Now we are on the verge of losing everything.”
