Written by The Banking Post
The Dhaka Stock Exchange (DSE) has suspended trading of shares in five struggling Islamic banks after the Bangladesh Bank declared them non-viable and began formal merger proceedings.
Trading in First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Exim Bank has been halted from Thursday and will remain suspended until further notice, the DSE said in a disclosure.
The central bank on Wednesday dissolved the boards of all five banks and appointed administrators, paving the way for their consolidation into a new entity named Sammilito Islami Bank.
At a press briefing, Bangladesh Bank Governor Ahsan H. Mansur said the banks’ net asset value per share ranged from Tk 350 to Tk 420 in the negative, meaning both sponsor and general shareholders’ stakes are effectively worthless.
“As the share value stands at zero, shareholders will not receive any compensation,” he said.
The announcement has left investors deeply unsettled, as trading suspensions and asset write-offs wiped out market confidence in the troubled lenders.
