Bangladesh Bank has finalized a draft special scheme to refund Tk2.0 lakh initially, then Tk 1.0 lakh in each three months to the depositors of merged five troubled Shariah Bank.
This initial amount will be paid out from the ‘Deposit Insurance Fund’. Following this, depositors whose balances exceed Tk2.0 lakh will be allowed to withdraw a maximum of Tk 1.0 lakh every three months for up to two years, said an official to UNB on Wednesday.
The authorities closed the merger process and said that the scheme was finalized at a crucial meeting chaired by Governor Dr. Ahsan H. Mansur at Bangladesh Bank on Tuesday.
The meeting included Mohammad Ayub Mia, Chairman of the newly formed 'Sammilito Islami Bank PLC,' four Deputy Governors, the Administrators of the five troubled banks, and relevant departmental officials.
The complexities have arisen in returning the funds because the new bank (Sammilito Islami Bank PLC) has not yet developed its database or appointed a Managing Director, creating a legal hurdle.
Despite this, the Governor has issued a directive to begin the process of refunding the money within December 2025.
Central Bank officials have discouraged customers from withdrawing money unnecessarily. They emphasized that since the new bank is fundamentally sound, withdrawing funds is not mandatory.
The primary goal of this scheme is to restore confidence among depositors and gradually bring stability back to the banking sector.
The central bank outlined the specific withdrawal limits under the scheme.
To avail themselves of the scheme’s benefits, customers must meet certain conditions. Such as the account must be valid and opened against a National ID Card, a customer with multiple accounts in a single bank will only receive the benefit against ‘one account’, a customer holding separate accounts in all five merged banks will be eligible for a separate payment against each account and depositors with outstanding loans cannot receive the payment until the loan is reconciled.
The five banks being merged are Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank. They all fell into deep crises due to massive loan fraud and irregularities by the S. Alam Group, that exercised its influence with the Awami League government to illegally control four of them, and the Nassa Group of Nazrul Islam Majumdar, who controlled the other.
The authorized capital for Sammilito Islami Bank PLC has been set at Tk 40,000 crore, with a paid-up capital of Tk 35,000 crore ( Tk20,000 crore from the government and Tk15,000 crore from depositors' shares).
Bangladesh Bank data shows the five banks hold deposits of approximately Tk1.42 lakh crore from 75 lakh depositors, against loans totaling Tk 1.93 lakh crore, a large portion of which is now treated as non-performing.
The new bank has already taken office space in the Senakalyan Bhaban in Motijheel. Measures, including a 20 percent cut in employee salaries and allowances and merging multiple branches in the same area, have been taken to reduce operational costs.