Bangladesh Bank has finalized a special refund scheme for depositors of the five troubled Islamic banks that were recently merged to form Combined Islami Bank PLC. Under the new plan, depositors will first be allowed to withdraw up to Tk 200,000 at once from the Deposit Insurance Fund. Those with deposits exceeding that amount may withdraw Tk 100,000 every three months for up to two years.
The decision came during a high-level meeting on Tuesday (9 December), chaired by Governor Ahsan H. Mansur and attended by deputy governors, administrators of the five banks, and senior officials. Despite the merged bank lacking a complete database and a managing director—creating legal and operational hurdles the Governor directed that refunds must begin by the end of December.
Special provisions have been made for elderly depositors aged over 60, as well as those suffering from cancer or critical illnesses, allowing them to withdraw any amount as needed. Central bank officials have, however, urged customers not to withdraw funds unnecessarily, noting that the bank is newly restructured and fundamentally stable. The scheme aims to restore depositor confidence and stabilize the banking sector.
To access the refund, customers must have a valid account linked to their national ID. Those with outstanding loans cannot withdraw funds until their loans are adjusted. Customers with accounts at multiple merged banks may withdraw separately from each.
The merger combines EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank institutions long burdened by loan scandals and rising non-performing assets. The new bank has a paid-up capital of Tk 350 billion, with the government contributing Tk 200 billion and depositors’ shares covering the rest.
The five banks currently hold deposits worth Tk 1.42 trillion from 7.5 million customers, against loans totaling Tk 1.93 trillion, much of which has defaulted. To reduce costs, employee salaries have already been cut by 20%, and overlapping branches will be consolidated.
Combined Islami Bank has begun operations from its temporary office in Motijheel’s Sena Kalyan Bhaban, with board formation and MD appointment expected soon.
