Written by The Banking Post
Regular banking activities resumed on the first day of 2026 at five Islamic banks undergoing a government-directed merger, easing depositor concerns after months of restrictions.
Bangladesh Bank has allowed customers to withdraw up to Tk 2 lakh from current and savings accounts, using cheques issued by the former banks. The move marks the first phase of restoring normal transactions at the newly formed Sammilito Islami Bank.
Visits to head offices and branches on Thursday showed withdrawals proceeding as per the revised guidelines. New signboards bearing the Sammilito Islami Bank name have already been installed at several locations, while others are in the process of rebranding. During the transition, both the old and new signboards will remain visible.
Under the merger plan, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and Exim Bank are being consolidated into Sammilito Islami Bank, which will assume all assets, liabilities and employees of the five lenders. The original entities will be dissolved once the process is completed.
At branch level, customers confirmed access to funds. A Union Bank depositor said he was able to withdraw his full balance of Tk 1.95 lakh. A senior officer at a First Security Islami Bank branch said customers had been arriving since morning and withdrawing up to the permitted limit.
Earlier this week, Bangladesh Bank issued a gazette outlining the resolution framework for the new bank, including its capital structure and depositor treatment. The central bank said all current, savings and fixed deposits of the five banks have been transferred to Sammilito Islami Bank.
As part of the restructuring, all shares of the five banks have been declared void. The authorised capital of Sammilito Islami Bank has been set at Tk 40,000 crore, with paid-up capital of Tk 35,000 crore. The government has already injected Tk 20,000 crore, classified as Class ‘A’ shares.
In addition, Tk 7,500 crore from fixed deposits of banks and financial institutions will be converted into Class ‘B’ shares, while another Tk 7,500 crore from other institutional depositors will be converted into Class ‘C’ shares.
The bank’s head office will be located at Sena Kalyan Bhaban in Motijheel. Deposits of up to Tk 2 lakh are withdrawable at any time from the effective date of the merger. Amounts above that will be released in phases over two years. For term and fixed deposits, depositors may access up to 20 per cent of their balances as loan or investment facilities, while longer-term deposits will be settled or renewed according to the approved schedule.
