Bangladesh Bank has decided to gradually withdraw administrators from Combined Islamic Bank as part of the progress in restructuring five financially troubled Islamic banks, with the handover of responsibilities expected to begin by the end of July.

Sources at the central bank confirmed the decision on Tuesday, saying the move reflects steady progress in the restructuring process. Bangladesh Bank also plans to strengthen the bank’s normal operations in phases.

The central bank expressed optimism that, once the restructuring is completed, depositors will be able to recover their savings along with the promised profit.

Earlier on Tuesday, customers of the five banks staged a demonstration in front of Bangladesh Bank, demanding the withdrawal of the proposed haircut policy, cancellation of the related circular, and full repayment of their deposits with profits.

The five banks involved in the merger are EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank. Bangladesh Bank initiated the merger last year following concerns over financial weakness, liquidity shortages, governance failures, and irregularities.

Under the restructuring plan, the five banks are being merged into Combined Islamic Bank, with an administrator appointed to each institution to oversee the transition. On June 8, Kazi Shairul Hasan was appointed chairman of the merged bank, while Abedur Rahman Sikder was named managing director.

Bangladesh Bank said responsibilities will be transferred gradually from the administrators as restructuring milestones are achieved. The central bank also plans to appoint additional experienced members to the bank’s board of directors.

The government has already invested Tk 100 billion in the merged bank through a Sukuk bond. Bangladesh Bank expects the capital injection and restructuring efforts to improve the bank’s financial health.

Combined Islamic Bank currently has an authorized capital of Tk 400 billion and a paid-up capital of Tk 350 billion.