Bangladesh Bank Governor Ahsan H. Mansur has instructed that all necessary measures be completed by mid-December to ensure the return of depositors’ funds from the five troubled banks. He urged the concerned authorities to take prompt action to ensure that depositors are fully repaid within the stipulated timeframe.
The Governor gave this directive at the first meeting of the newly formed board of directors of United Islamic Bank. The meeting, held on Wednesday (17 December), was chaired by the bank’s chairman, Dr. Mohammad Ayub Mia.
The meeting was informed that a uniform and integrated human resources policy would be formulated for the new bank. At present, the five merged banks have differences in job titles, grades, and promotion systems. Instructions were given to bring these matters under a single, unified framework. The Governor emphasized the introduction of a common designation structure, a transparent promotion system, and integrated salary grades for officials. Bangladesh Bank will directly supervise the implementation of these policies.
The meeting also stated that all processes must be completed by December so that depositors’ money can be returned. At the same time, instructions were issued to ensure that customers can withdraw money seamlessly using previously issued cheques.
It was further informed that the formal inauguration of the United Islamic Bank is planned for January. However, depositors were assured that they would be able to recover their deposited funds before the inauguration.
Members of the board of directors expressed agreement with the Governor’s directives and stated that protecting depositors’ interests would be the top priority of United Islamic Bank.
Earlier, during the tenure of the Awami League government, several influential groups had fraudulently taken large volumes of loans from multiple banks. Due to these irregularities and loan scandals, several banks gradually fell into severe financial distress. To manage the situation, Bangladesh Bank approved the merger of five troubled banks to form the United Islamic Bank.
The five merged banks are: EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank.
The paid-up capital of United Islamic Bank PLC has been set at Tk 350 billion, of which the government will provide Tk 200 billion, while the remaining Tk 150 billion will come from depositors’ shares. The bank’s authorized capital has been fixed at Tk 400 billion.
According to Bangladesh Bank data, the five banks currently hold deposits of approximately Tk 1.42 trillion from around 7.5 million depositors. In contrast, the total amount of loans disbursed stands at Tk 1.93 trillion, a large portion of which has already become non-performing.
Across the country, these banks operate a total of 760 branches, 698 sub-branches, 511 agent banking outlets, and 975 ATM booths. After the merger, plans have been taken to consolidate multiple branches in the same area into one or two branches. To reduce operational costs, employee salaries and benefits have already been cut by 20 percent.
Initially, office space for United Islamic Bank has been taken at the Sena Kalyan Bhaban in Motijheel, Dhaka. A current account has already been opened at the Motijheel branch of Bangladesh Bank. A full-fledged board of directors will be formed and a managing director appointed soon. Earlier, on 5 November, the central bank appointed administrators and declared the shares of the banks void.
