Bangladesh Bank Initiates Merger of Five Shariah-Based Banks; New Bank Named ‘Sammilito Islami Bank’

PNN News Desk | Dhaka:

Bangladesh Bank has begun implementing the decision to merge five domestic Shariah-based banks. The newly merged bank has been named ‘Sammilito Islami Bank’. The banks being merged are First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and Exim Bank.

A committee formed by Bangladesh Bank and the government has started the process of establishing this new bank. It will be a state-owned bank, initially capitalized at BDT 20,000 crore, with BDT 10,000 crore in cash and the remaining BDT 10,000 crore through Sukuk bond issuance.

Bangladesh Bank has been working on this merger for almost a year. On 9 October, the Advisory Council of the Interim Government of Bangladesh approved the proposal.

The new bank will have an authorized capital of BDT 40,000 crore, of which BDT 35,000 crore will be paid-up capital. The government will provide BDT 20,000 crore directly, and the remaining BDT 15,000 crore will come from converting shares of institutional depositors into capital.

According to Bangladesh Bank sources, during the merger process, the banks’ deposits, loans, and treasury operations are being newly audited. Discussions are also ongoing regarding staff and branch network management.

Officials noted that some changes will be made to the branch network of the five banks. Many district towns currently have multiple branches of these banks; in such cases, one or two branches will remain while the rest will be relocated to other sub-districts.

Meanwhile, Mohammad Nurul Amin, Chairman of Global Islami Bank, stated, “We are awaiting the written decision on the merger. However, the process has already officially begun, and the banks’ deposits, loans, staff, branches, and ATM networks are being reviewed.”

This merger is expected to usher in a new era in Bangladesh’s banking sector, enhancing the stability and efficiency of the banking system.