United News of Bangladesh

Union Bank PLC, a listed entity reportedly affected by financial irregularities linked to the S. Alam Group, recorded a staggering per-share loss of nearly Tk 249 in 2024. The summary of the bank’s audited financial report for 2024 was published on Tuesday (November 18) through the Dhaka Stock Exchange (DSE). This massive loss translates to a net deficit of approximately Tk 26,000 crore, according to the audited financial statements. The figure represents an 88-fold increase in the bank’s net loss compared to the previous year, when it reported a net loss of over Tk 292 crore. A review of the published summary highlights the severity of the bank’s financial condition. In response to the crisis affecting Union Bank and four other distressed lenders, Bangladesh Bank (BB) has decided to merge five Islamic banks into a single entity, to be named the ‘Combined Islamic Bank’. Islami Bank customers organise human chain against S. Alam era appointees The five banks involved in the merger are: ·         Union Bank ·         First Security Islami Bank ·         Social Islami Bank (SIBL) ·         EXIM Bank ·         Global Islami Bank According to information from Bangladesh Bank, the 'Combined Islamic Bank' will have a total capital base of Tk 35,000 crore. The government will provide Tk 20,000 crore of this capital, while the remaining Tk 15,000 crore will be raised by converting depositors’ funds into shares of the new bank. The central bank has appointed Nazma Mobarek, Secretary of the Financial Institutions Division, as chairperson of the newly-merged entity. Read more: Capital flight forces merger of 5 Shariah-based banks: BB Governor

Bangladesh Bank Governor Dr Ahsan H Mansur on Sunday (November 16) said a substantial portion of the capital from the country’s five troubled Shariah-based banks has been siphoned off abroad, leaving no option but to merge them to safeguard the sector. He made the remarks while speaking at the opening session of the Bangladesh Islamic Finance Summit 2025, held at a city hotel. The three-day summit aims to position Bangladesh as a key Islamic finance hub in South Asia. “Much of the capital from the five Shariah-based banks has been taken out of the country. Unfortunately, even the most dynamic Islamic bank in the country was hollowed out,” the governor said. The five banks currently undergoing the merger process are EXIM Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank. Read more: Compensation for small investors in merged banks under review: Central Bank Bangladesh Bank dissolved the boards of all five banks and appointed administrators on November 5, initiating the formation of a new entity named Sammilito Islami Bank (Combined Islamic Bank). Dr Mansur emphasised that transparency is essential to revitalising and strengthening the banking sector. He urged active participation from all stakeholders, including investors, depositors and employees, to ensure the success of the consolidation. If strong governance can be maintained during the merger process, the initiative will ultimately benefit the country’s economy, he added. City Bank Managing Director and CEO Mashrur Arefin attended the event as the special guest. Among others, M Kabir Hassan, professor of finance at the University of New Orleans and Dr Eskandar Shah Mohd Rashid, CEO of ISRA, also spoke at the opening ceremony. The summit brought together regulators, Shariah scholars, Islamic banking professionals, and high-level delegates from countries including Bahrain, Pakistan, Malaysia, and the United States. Discussions will focus on strengthening governance, expanding financial inclusion, and integrating AAOIFI’s global Shariah, governance and accounting standards into Bangladesh’s Islamic finance framework. Read more: BB orders strict loan data updates to bar defaulters from election race

Trading of shares of five Islamic banks has been suspended at both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) as part of their ongoing merger process. In separate notices issued on Thursday (6th November 2025), the two bourses announced that trading in the shares of First Security Islami Bank, Social Islami Bank (SIBL), EXIM Bank, Global Islami Bank, and Union Bank will remain suspended until further notice. The suspension follows the banks being declared non-operational under Section 15 of the Bank Resolution Ordinance, 2025, which took effect on November 5. Stocks tumble at opening as DSE, CSE see sharp decline According to the exchanges, Bangladesh Bank, in a letter issued on the same day, instructed that the five banks be brought under the provisions of the Bank Resolution Ordinance, 2025, and subsequently dissolved their respective boards of directors. Bangladesh Bank Governor Dr Ahsan H Mansur said at a press conference on Wednesday that the shareholders’ equity value of these banks had fallen below zero. “The value of their shares is effectively zero, and no compensation will be provided to anyone,” he stated. Depositors of Bangladesh’s troubled banks still anxious despite security assurances

Abdul Aziz, a middle-aged migrant worker who recently returned from Saudi Arabia, visited the Tangail branch of First Security Islami Bank (FSIB) to withdraw Tk 100,000 for his daughter’s wedding, but the bank provided him with only Tk 25,000. Aziz, a resident of Ghatail Upazila in Tangail, informed the bank officer of his urgent need. Despite his plea, he was given just a quarter of the amount, citing a cash crisis at the bank. Talking to UNB over the phone, Aziz expressed concern but remained hopeful that the ongoing merger of five Islamic banks, including FSIB, would ease the current liquidity crunch. Similar incidents have reportedly occurred at the Tangail branches of Union Bank, EXIM Bank and other struggling Islamic banks currently undergoing the merger process. When contacted, FSIB Chairman Muhammad Abdul Mannan acknowledged the ongoing liquidity issues, saying the merger would protect every depositor’s interest, especially as state ownership would ensure government backing to meet obligations. Merger of 5 Islamic banks at final stage: Bangladesh Bank Governor Mannan, who also chairs the Islamic Banks Consultative Forum, admitted that many of the banks had previously kept numerous loans classified as ‘regular’ through methods such as rescheduling. “When I assumed office, FSIB’s non-performing loans (NPLs) were reported at just 4.5 percent. But by December, the bank’s own assessment, following a more rigorous review, placed the figure at 29 percent,” he said. He explained that the ongoing Asset Quality Review (AQR) considered loan quality, collateral and even the existence of borrowing entities, which led to the sharp rise. Mannan stressed that government support would be vital for recovery and said merging the five banks into one robust Islamic institution would protect depositors and restore public trust in the banking sector. Under current regulations, Shariah-compliant Islamic banks must maintain 4 percent of their total deposits as Cash Reserve Ratio (CRR) and 5.5 percent as Statutory Liquidity Ratio (SLR) with the central bank. Several Islamic banks have failed to meet these requirements since 2022, due to excessive and uncontrolled lending. Despite this, no significant regulatory action was initially taken. These banks were even permitted to maintain negative balances in their current accounts with the central bank. But, with Dr Ahsan H. Mansur assuming the role of Bangladesh Bank Governor, such irregular practices have been stopped. To help depositors access their funds, the central bank has even printed money to offer special loans to these banks. Governor's London visit adds impetus to efforts to recover stolen assets: Bangladesh Bank Bangladesh Bank data shows that EXIM Bank received the highest special loan at Tk 8,500 crore. FSIB followed with Tk 7,050 crore, SIBL received Tk 6,675 crore, Global Islami Bank Tk 2,295 crore, and Union Bank Tk 2,400 crore. The central bank is now moving forward with plans to merge these five ailing Islamic banks into a single, more resilient entity, after uncovering approximately Tk 85,000 crore in previously undisclosed NPLs through the AQR process. AQR findings have revealed that combined non-performing loans across the five banks now stand at around Tk 1,47,000 crore—equivalent to nearly 77 percent of their total loan portfolios. This has resulted in a massive provision shortfall of Tk 74,501 crore. Bangladesh Bank had commissioned two international audit firms in January to assess the actual financial condition of six Islamic banks that had become reliant on liquidity support to meet depositor demands. Ernst & Young is auditing the assets of EXIM Bank, Social Islami Bank (SIBL), and ICB Islamic Bank, while KPMG is reviewing FSIB, Global Islami Bank, and Union Bank. Due to its foreign ownership, ICB Islamic Bank has been temporarily excluded from the merger plan. Discussions regarding the merger of the remaining five banks took place just before Eid-ul-Azha. This initiative is part of the newly introduced Bank Resolution Ordinance 2025, which aims to address the challenges faced by weak financial institutions. The first phase of the merger is expected to conclude between July and October, with five Bangladesh Bank teams assigned to monitor the banks closely. The audit reports are based on financial indicators as of September and generally align with Bangladesh Bank’s own ‘Quick Summary’ reports for December. However, significant discrepancies exist between the audit findings and the banks’ self-reported figures. A common pattern is that total loans exceed total deposits—primarily because the banks failed to recover loans while depositors continued to withdraw funds.

EXIM Bank, a private sector financial institution, has announced that it will not proceed with the planned merger with Padma Bank. The announcement was made on Tuesday following nearly nine months of discussions regarding the merger of the crisis-ridden Padma Bank with the more stable EXIM Bank. No Padma Bank employee will lose job: Exim Bank Chairman says after signing merger The decision came after a board meeting on Monday, where EXIM Bank's directors decided that the amalgamation would not go ahead. The merger was initially agreed upon on March 14, after Padma Bank, plagued by financial difficulties and a history of scams, was unable to recover despite receiving a government bailout of Tk1,700 crore. Exim Bank incurs Tk 566cr loss in 2024 Q3 as deposits slump The Dhaka Stock Exchange (DSE) had been informed of EXIM Bank’s application to halt the merger earlier this week. With this development, officials said, Padma Bank, which has faced significant financial strain, will need to explore other options for stabilising its operations.

Border Guard Bangladesh (BGB) clinched the Exim Bank 33rd National Men's Handball Championship title beating Bangladesh Ansar & VDP team by 37-32 goal in the final at the Shaheed (Capt) M Mansur Ali National Handball Stadium here Tuesday afternoon.  This 30th title for BGB (former BDR) in 33 national meets. The winners led the first half by 16-10 goal.  Read more: National Handball: Police Handball Club finish 3rd beating Dhaka DSA by 32-29 goal Tariqur Rahman of the BGB was adjudged the best player of the tournament.  State Minister for Youth and Sports Zahid Ahsan Russell MP witnessed the day's final as the chief guest and later he distributed the trophies at a function chaired by Bangladesh Handball Federation (BHF) President AKM Nurul Fazal Bulbul. BHF general Secretary Asaduzzaman Kohinoor, among others, was also present on the occasion     Earlier in the semifinals, Ansar & VDP eliminated Bangladesh Police Handball Club by 34-27 goal while BGB booked a seat for the final eliminating Dhaka DSA by 41-15 goal.  Read more: BGB make good start to Victory Day Handball

A new direct Rail Link from Bogura to Shahid M. Mansur Ali Station, Sirajganj will be developed under a Line of Credit (LoC) from India in a significant step towards further modernization of Bangladesh’s railway infrastructure. The project is aimed at enhancing railway connectivity between Bangladesh and India. The funds will be disbursed through EXIM Bank of India. As the first step, an agreement between Bangladesh Railway and Indian consultant (JV of RITES Ltd. and Aarvee Associates) was signed on Monday.  Read: Rail operation on Padma Bridge may start from Dec 2022: Minister Railways Minister Nurul Islam Sujan and Indian High Commissioner to Bangladesh Vikram Doraiswami were present.  The signing ceremony took place in Rail Bhaban with Railway Secretary Mohd Salim Reza in the chair.  Senior officials from Railways Ministry, Bangladesh Railway, Indian High Commission, Dhaka, Exim Bank of India’s Dhaka Representative Office, RITES Ltd. and Aarvee Associates Architects Engineers & Consultants Pvt. Ltd. were also present. The scope of Consultancy Services includes updating the project feasibility study, detailed engineering design and drawings of all infrastructure including bridges, embankments, railway track, stations, signalling and all other facilities, route alignment, mathematical modeling, tendering services and construction supervision services. Read:50 railway stations are getting facelift with modern amenities, says railways minister

A Dhaka court on Thursday acquitted Shikder Group directors Ron Haque Sikder and Dipu Haque Sikder from a case filed by Exim Bank director Lt. Col. (retd) Sirajul Islam. Sirajul Islam filed the case with Gulshan Police Station on May 12, 2020, alleging that Ron and Dipu tried to kill and harass the managing director (MD) and deputy managing director (DMD) of Exim Bank by shooting them. After a long trial of more than a year, the final report of the case was submitted to the CMM court on August 9 by the DB police. According to sources, the final report mentioned that the chemical test by the CID and the DB investigation did not find any evidence of shooting. Read: Ron Sikder freed on bail hours after arrest Although the statement of case mentioned that Ron Sikder had picked up and taken away the MD and DMD of Exim Bank from their head office in Gulshan, the police report stated that Exim Bank authorities could not provide any CCTV footage or any other evidence. Although the case statement mentioned the main contradiction over the loan application of Tk 500 crore, Exim Bank failed to show any evidence of Ron Haque Sikder’s loan application, the police report said. The final report of the police was presented in the court stating that the plaintiff and defendant had compromised saying that the case was filed due to misunderstanding of business. It is mentioned that the good relationship between both the plaintiff and the defendant is a long-lasting one and they will continue to have good relationship with each other in future, too. Both sides promised that no one of them would complain in the future about the issues mentioned in the compromise. Read: Sikder Group smelling a conspiracy When the court asked plaintiff Sirajul Islam if he had any objection to the police report and the compromise, he told the court that he had no objection. Ron Sikder was present at the court at that time. After hearing both the parties, the court acquitted Ron Sikder and Dipu Sikder from the case.

The Exim Bank National Women's Handball Championship will begin on Tuesday at the Bir Shreshtha Nur Mohammad Stadium in Narail.

A Dhaka court on Friday granted bail to Managing Director of Sikder Group Ron Haque Sikder hours after he was arrested in an attempted murder case.