Sammilito Islami Bank Returns Tk 250 Crore to 6,000 Customers on First Day

Staff Report: PNN

Sammilito Islami Bank, formed through the merger of five Shariah-based banks, has begun returning to normal banking operations after overcoming a prolonged deadlock. As part of the process, the bank began returning depositors’ money on Monday (September 7). On the very first day, the bank returned Tk 250 crore to around 6,000 customers.

Alongside the return of deposits, Sammilito Islami Bank also launched online money-transfer services on Monday. As a result, the bank, which had been facing a prolonged crisis, has gradually begun returning to normal operations.

An initiative was taken to form Sammilito Islami Bank by merging First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and EXIM Bank. Although the new bank has been formed, the branches of the five merged banks are still operating separately. Together, these banks have a total of 761 branches across the country.

Applications for the return of deposits were accepted from customers between September 1 and September 6. Within the stipulated period, 74,000 depositors applied for the return of a total of Tk 3,925 crore. Bangladesh Bank has allocated Tk 5,000 crore to Sammilito Islami Bank to repay their deposits.

According to bank sources, some of the customers who had applied came to branches on the first day and withdrew their money. However, not everyone who submitted an application came to withdraw their funds. Many contacted the bank authorities and said they wanted to keep their money in the bank for the time being. Others withdrew their money and later deposited it back into the bank.

Mohammad Abedur Rahman Sikder, Managing Director (MD) of Sammilito Islami Bank, said arrangements had been made to return the money to all customers who had submitted applications. However, not everyone came to withdraw their money on the first day. Some decided to keep their deposits in the bank, while several customers redeposited the money after withdrawing it.

Visits to several branches in Gulshan, Mohakhali, Banani and Motijheel in the capital found that sufficient cash had been arranged to make payments to customers. From the morning, customers were seen arriving at various branches to withdraw their money. Bank officials welcomed customers with flowers and returned funds to those whose applications had been properly submitted.

A B M Mokarram Mahmud, manager of the Uttara branch of the merged Union Bank, said eight customers applied to withdraw money on the first day. Four of them withdrew their funds. The bank also contacted the others. In addition, customers who have accumulated profits in their accounts are also being given the opportunity to withdraw them.

Earlier, an initiative was taken to merge the five Shariah-based banks, which had been facing financial difficulties for a long time. The former interim government took the initiative in August 2024 following the fall of the Awami League government. Among the five banks, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank were controlled by Chattogram-based businessman Saiful Alam, commonly known as S Alam. The other bank, EXIM Bank, was controlled by Nasa Group Chairman Nazrul Islam Mazumder.

During the period when they were under their control, allegations of major loan irregularities emerged at these banks. Subsequently, various financial irregularities came to light through domestic and international financial audits. According to audit reports, there were allegations that a huge amount of loans from the five merged banks had been diverted through irregular means. As a result, the banks faced severe liquidity and financial crises, making it difficult for them to return depositors’ money.

Against this backdrop, an initiative was taken to merge the banks and bring them under a new structure. At the same time, the ownership of the previous owners was cancelled and control of the banks was taken over by the government. Even after the BNP government assumed office in February, the merger and restructuring process of Sammilito Islami Bank has continued.

With the return of deposits and the launch of online money-transfer services, the bank’s process of returning to normal operations has now become more visible.