The High Court has received a writ petition contesting the validity of the merger of five Islamic banks in the private sector that are experiencing financial difficulties. Barrister Mahsib Hossain filed the petition on behalf of Shahidul Islam, a retail investor.

The respondents in the case include the Governor of Bangladesh Bank, the Finance Secretary, and other officials. On October 9, the Council of Advisers approved a plan to merge the following five banks: First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank. The merged entity will operate as a shariah-based bank. (The new bank is proposed to have an authorised capital of BDT 40,000 crore and a paid-up capital of BDT 35,000 crore. A significant portion of the bank’s capital is expected to come from institutional deposits being converted into equity through a “bail-in” process, while the government will provide another large chunk of the capital

In the petition, the High Court has questioned the legality of several provisions in the Bank Resolution Ordinance-2025, citing potential violations of constitutional rights.