“United Islami Bank” to Be Formed, Government to Provide 20,000 Crore Taka Assistance

Staff Reporter | PNN:
The Advisory Council has approved a proposal to merge five weak banks into a new Shariah-based bank. The government will provide 20,000 crore Taka as capital support for the new bank.

The banks to be merged are: First Security Islami Bank, Global Islami Bank, Union Bank, Exim Bank, and Social Islami Bank. The proposed name for the new bank may be “United Islami Bank” or “Combined Islami Bank.”

The decision was taken at a meeting of the Advisory Council chaired by Chief Advisor Dr. Muhammad Yunus. The new bank’s authorized capital will be 40,000 crore Taka, of which 35,000 crore Taka will be required as paid-up capital. Of this, 15,000 crore Taka will come from converting existing deposits into capital, and the remaining 20,000 crore Taka will be provided by the government.