Bangladesh Bank has provided Tk 5,000 crore to Sammílito Islami Bank to facilitate the repayment of deposits to customers of the five banks merged to form the lender.
Around 75,000 customers have applied to withdraw their deposits, with their claims totaling Tk 3,925 crore. Applications for deposit withdrawals began on September 1, and payments are expected to start on Monday.
The five banks merged to form Sammílito Islami Bank are EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.
The banks faced severe financial difficulties after accumulating large volumes of loans, with depositors subsequently struggling to withdraw their funds. The interim government merged the five Shariah-based banks last year to establish Sammílito Islami Bank.
The bank has a paid-up capital of Tk 35,000 crore, of which the government has provided Tk 20,000 crore. The remaining Tk 15,000 crore will be provided to depositors in the form of shares.
In addition, Tk 12,000 crore from the deposit insurance fund is being used to repay up to Tk 2 lakh to depositors under a scheme announced by the central bank.
Bangladesh Bank Governor said on August 25 that depositors of Sammílito Islami Bank would not face any haircut on their deposits. Individual depositors have been allowed to withdraw their principal deposits according to their needs from September 1.
Under Bangladesh Bank’s instructions, individual depositors can withdraw money from current and savings accounts as well as the principal amount of term deposits. However, profits earned or payable on the deposits will not be available under the withdrawal facility.
Once a customer withdraws the principal amount, the deposit will be considered fully and finally settled. If the customer has any outstanding loan or liability with the former bank, the amount will be adjusted against the deposit before repayment.
Customers who do not withdraw their deposits immediately can keep their accounts active and continue to receive profits at the applicable contractual rates. However, if a term deposit is encashed before maturity, the customer will receive the principal but will not be entitled to profit on that amount. Partial withdrawals will allow profits to continue on the remaining balance according to applicable rules.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said all preparations had been completed to repay depositors.
“There is no reason for customers to panic. Depositors of Sammílito Islami Bank will be paid according to the commitment,” he said.
The central bank has also urged depositors to avoid unnecessary crowds at bank branches during the withdrawal process. Those who do not urgently need funds have been requested to visit branches on later days instead of rushing to withdraw money on the first day.
The central bank spokesperson said simultaneous visits by large numbers of depositors could disrupt normal banking operations and urged customers to withdraw their funds gradually and patiently.
