Five Islamic banks listed on the stock market are set to merge into what will become the country’s largest bank. However, the merger will also result in the delisting of all five banks, sparking panic among general investors who now face massive financial losses.

The affected banks are EXIM Bank, Global Islami Bank, First Security Islami Bank, Social Islami Bank, and Union Bank. Together, they hold deposits worth over Tk 1.52 trillion and loans exceeding Tk 2 trillion. While the Bangladesh Bank has assured that depositors are protected, no such assurance has been given to stock market investors.

In the wake of the announcement, share prices of the affected banks — all previously valued at Tk 10 — have plunged below Tk 5, wiping out more than half of many investors’ capital. First Security Islami Bank, which has the highest general investor holding at 65%, has seen some of the steepest declines.

Investors are demanding intervention from the Bangladesh Securities and Exchange Commission (BSEC) and the Finance Ministry, stressing that they are being unfairly penalized for mismanagement they did not cause.

Despite early talks about possible compensation, no formal proposal has been made. Meanwhile, analysts warn that this could erode broader investor confidence, as even profitable banks like City Bank struggle to maintain share value despite strong earnings.

As of now, only about a dozen of the 36 listed banks are trading above their face value — a sign of growing uncertainty in the banking sector.