The Finance Division of the Ministry of Finance has released Tk 20,000 crore in favor of the newly formed Combined Islamic Bank, created through the merger of five banks. The money has been provided as capital from the budget of the current 2025–26 fiscal year. The funds were deposited into the bank’s account yesterday, Monday, according to sources in the Ministry of Finance and Bangladesh Bank.

An official of the Finance Division said that Tk 24,196 crore had been allocated for the equity, or capital, sector in this year’s budget. The funds have been released from that allocation. Once the bank begins commercial operations and returns to profitability, the government will receive the profits. The government’s goal is to offload Tk 20,000 crore worth of shares to the private sector after three years, provided the bank becomes fully operational.

Combined Islamic Bank PLC has already been registered with the Registrar of Joint Stock Companies and Firms. The bank will have a paid-up capital of Tk 35,000 crore, of which the government’s share is Tk 20,000 crore. Bangladesh Bank yesterday listed the institution as a scheduled bank.

A press release from Bangladesh Bank issued yesterday stated that, in terms of capital, this bank is beginning its journey as Bangladesh’s largest state-owned and Shariah-based bank. Bangladesh Bank firmly believes that depositors will be fully assured of the safety of their deposits and that no depositor will lose their money. According to the Deposit Protection Ordinance, 2025, deposits up to Tk 200,000 are fully protected and will be repaid soon after the completion of the merger.

It also stated that guidelines for repaying deposits above Tk 200,000 will be published very soon. The new bank will operate under the close supervision of Bangladesh Bank with the highest professionalism and efficiency. It is expected that in a short period, the bank will be able to prove its potential and capacity as a dynamic, modern, and competitive Shariah-based bank. The government and Bangladesh Bank are committed to restoring public trust in the banking sector. Bangladesh Bank hopes that this merger will make the country’s banking sector stronger, more sustainable, and more inclusive.