Bangladesh Bank has reviewed the progress of loan recovery, reconstruction, and overall operations of Sommilito Islami Bank PLC.
Prioritizing the recovery of non-performing loans to protect depositors' interests, the bank has already filed nearly 10,000 lawsuits, with the process underway to file additional cases.
Governor Mostaqur Rahman chaired a review meeting with the Bank Resolution Department (BRD), held at the central bank headquarters on Thursday.
The meeting reviewed the bank's merger and reconstruction process, board and management restructuring, human resource integration, branch rationalization, and IT system integration, all being implemented under the central bank's direct supervision and monitoring.
To protect depositors' interests and recover non-performing loans, Sommilito Islami Bank has filed nearly 10,000 lawsuits, with additional cases currently in process. Alongside formal legal action, the bank has adopted compromise-based settlement mechanisms, including an Exit Policy and Alternative Dispute Resolution (ADR).
Additionally, a forensic audit is in its final stage to identify individuals responsible for past irregularities, corruption, loan fraud, and asset misuse under the bank's previous ownership and management.
Key measures executed and monitored over the past six months include:
i) The board of directors was reconstituted with a majority of independent directors, and a Chief Executive Officer (CEO) was appointed on July 16, 2026.
ii) Organizational structures, roles, and designations for approximately 16,000 officers and employees have been aligned. Integration of IT infrastructure—including Core Banking System (CBS), SWIFT, and RMA—is underway to merge operations across five banks. A common interface will soon be introduced to enable depositors to withdraw funds from any branch of the five constituent banks.
iii) Rationalization and operational integration are ongoing for 780 branches and 1,500 business units based on location, business potential, customer service, and operating costs.
Launched as the country's largest state-owned Shariah-compliant bank with a capital base of Tk 35,000 crore, Bangladesh Bank reaffirmed that ensuring transparency, accountability, and good governance in Sommilito Islami Bank's asset and deposit management remains a top priority.
The central bank expects these consolidated measures to enhance governance, operational efficiency, and financial capacity while reducing administrative costs and redirecting recovered funds back into productive economic sectors.