A writ petition filed in the High Court challenging the legality of the decision to merge five crisis-hit private banks has been dismissed. Hearing the matter, a High Court bench comprising Justice Fahmida Kabir and Justice Asif Hasan issued this order on Monday.
Barrister Syed Mahsib Hossain presented arguments in favour of the writ in court, and he confirmed the order to journalists. Representing Bangladesh Bank during the hearing was Additional Attorney General Barrister Mohammad Arshadur Rauf.
Earlier, on 18 November, lawyer Syed Mahsib Hossain filed a writ in the High Court on behalf of general investor Shahidul Islam, challenging the legality of the decision to merge five crisis-hit private banks. The writ named the finance secretary, the governor of Bangladesh Bank, the Dhaka Stock Exchange, the Chittagong Stock Exchange, among others, as respondents.
The writ sought the court’s directive to take protective measures regarding issuing shares to the general shareholders of the concerned five banks in proportion to their existing shareholdings in the formation of the proposed “Combined Islami Bank“.
On 9 October, the Caretaker Government’s Advisory Council approved the proposal to merge the five crisis-ridden banks. The decision was made to merge First Security Islami Bank, Global Islami Bank, Union Bank, Exim Bank, and Social Islami Bank to form a new shariah-based bank.
