Bangladesh Bank Governor Dr Ahsan H Mansur will formally inaugurate the newly formed Sammilito Islami Bank PLC on Thursday, marking a significant step towards the restructuring of the country’s Islamic banking sector.
Talking to reporters, a Bangladesh Bank official on Tuesday confirmed that Governor Ahsan Mansur will inaugurate the new bank on Thursday.
The bank began operations on Tuesday, following the final approval and licensing from the central bank on Monday.
The new bank, formed by merging five struggling Islamic banks, aims to stabilise the sector and restore public confidence under the leadership of its chairman, former Secretary Dr Mohammad Ayub Mia, who has pledged to rebuild depositor trust.
“The launch of a new state-owned Islamic bank is a positive message for the nation. Our main objective is to restore the confidence of the depositors. Sammilito Islami Bank will become a symbol of trust for the nation,” Dr Ayub said.
Analysts and stakeholders view the creation of Sammilito Islami Bank PLC as a crucial move in the effort to address long-standing financial instability and revive the confidence of depositors.
The Bangladesh Bank announced that depositors will be able to withdraw up to Tk 2 lakh starting next week, with a roadmap for phased release of larger deposits in preparation.
The move is seen as critical for stabilising the Islami banking sector and accelerating the return of long-held deposits.
Sammilito Islami Bank PLC is the result of a merger of First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank, and Union Bank.
The merger was approved during a special board meeting of the central bank, chaired by Governor Dr. Ahsan H Mansur, on Sunday.
Dr Mohammad Ayub Mia appointed chairman of Sammilito Islami Bank
This new bank features one of the largest capital structures in the country’s banking history, with an authorised capital of Tk 40,000 crore and a paid-up capital of Tk 35,000 crore – Tk 20,000 crore contributed by the government and Tk 15,000 crore through conversion of depositors’ shares.
Officials said the original shareholders of the merged banks, deemed ‘non-viable’ with negative net asset values, did not receive compensation for their shares.
The bank is intended to operate under state ownership temporarily, with the possibility of eventual transfer to private ownership, including potential participation from former foreign investors, once stability is achieved.