Business & Finance
Merged Sammilito Islami Bank Refunds Tk 2.5 Billion to 6,000 Depositors on First Day
Sammilito Islami Bank PLC, formed from the merger of five Shariah-based banks, has begun returning to normal operations after refunding Tk 2.5 billion (250 crore) to 6,000 customers on the first day of its deposit return process on Monday. The bank also resumed online fund transfers the same day, marking renewed momentum in its operations after a prolonged period of disruption.
Sammilito Islami Bank was created through the merger of First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and EXIM Bank, an initiative launched by the former interim government. Although the merger has been finalized, the 761 branches of the five original banks continue to operate separately across the country.
The deposit return process began Monday following a government decision, after applications were collected from interested depositors between September 1 and 6. According to bank sources, 74,000 depositors applied to withdraw a total of Tk 39.25 billion (3,925 crore) during that window. To ensure no customer left empty-handed, Bangladesh Bank allocated Tk 50 billion (5,000 crore) to the merged bank.
The government assumed full ownership of the bank after declaring the value of all shares in the five merged banks to be zero.
Sammilito Islami Bank Managing Director Md Abedur Rahman Sikder told Prothom Alo that arrangements had been made to return money to all customers who had applied. However, not everyone who applied showed up to collect their funds on the first day. Some contacted customers said they preferred to keep their money deposited, while others withdrew their funds only to redeposit them shortly after, he said.
Visits to several branches in Dhaka’s Gulshan, Mohakhali, Banani and Motijheel areas on Monday showed that adequate funds had been arranged by the head office and individual branches. Customers began lining up from the morning to withdraw their money, and branch staff greeted them with flowers. All customers with properly submitted applications received their funds.
ABM Mokarram Mahmud, manager of the Uttara branch of the former Union Bank, said eight customers applied to withdraw money on the first day, four of whom completed their withdrawals while the rest were contacted by the bank. Customers with accumulated profits in their accounts were also able to withdraw funds.
The merger followed the fall of the Awami League government in August 2024, when the interim government combined the five troubled banks due to severe financial irregularities. Four of the banks—Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank—had been controlled by controversial Chattogram businessman Saiful Alam, known as S Alam, while EXIM Bank was controlled by Nassa Group Chairman Nazrul Islam Mazumder. Both businessmen were known to have close ties to ousted Prime Minister Sheikh Hasina.
Audits conducted after the political transition revealed that roughly 80 percent of the loans issued by the five banks had been siphoned off, leaving them in severe financial distress and unable to meet depositor demands. In response, the former interim government moved to merge the banks, cancelling the ownership rights of their previous controllers and transferring control to the state. Since taking office in February, the BNP government has continued to advance the bank’s merger and stabilization process.