Finance Minister Amir Khasru Mahmud Chowdhury has assured depositors of the newly formed Sommilito Islami Bank PLC that they will receive their deposits in full, along with accrued interest, ruling out any possibility of a “haircut” on customer funds.

Speaking in Parliament on Wednesday in response to an urgent public notice raised under Rule 71 by reserved-seat MP Rehena Akter Ranu, the finance minister said the government would fully protect depositors’ interests despite the financial difficulties facing the merged banks.

He said the government enacted the Bank Resolution Act, 2026 to restore stability in the banking sector. Under the law, Export Import (EXIM) Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank have been merged to form Sommilito Islami Bank PLC.

Describing the situation as “heartbreaking,” the minister said depositors would receive both their principal and interest.

“Since depositors will get their money back with interest, there is no question of any haircut,” he said, adding that the process may take some time because the merged banks are currently operating at a loss.

To strengthen depositor protection, the government has increased the deposit insurance coverage from Tk 100,000 to Tk 200,000 under the Deposit Protection Act, he added.

The finance minister also said special forensic audits are underway to investigate financial irregularities and alleged embezzlement in the banking sector. Under Section 57 of the Bank Resolution Act, authorities will be able to seize, auction or sell the domestic and overseas assets of those found responsible in order to recover depositors’ money.

Regarding funds allegedly laundered abroad, Chowdhury said the government has begun the process of appointing nine international law firms on a “no win, no fee” basis. Civil proceedings have already been initiated against six major business groups from a priority list of 11 cases.

The groups include S. Alam Group, Beximco, Sikder Group, Nassa Group, Orient Group and entities linked to former Land Minister Saifuzzaman Chowdhury.

Earlier, MP Rehena Akter Ranu said nearly 7.5 million depositors of the five troubled banks were living with deep uncertainty and urged the government to ensure that none of their deposits were reduced through a haircut.

She also called for swift recovery of embezzled funds by auctioning the assets of those responsible, saying the savings held in banks represent people’s essential needs, including medical treatment, education, weddings and retirement, rather than luxury spending.