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Bangladesh Bank (BB) has decided to issue a license to the much-talked-about Sammilito Islami Bank being formed through the merger of five financially troubled Islamic banks.

The decision of giving final approval from the central to the newborn unconventional bank was taken at a special board meeting of the BB held on Sunday at the BB headquarters.

With securing license, the new shariah-based bank emerged as the largest commercial bank in terms of paid-up capital (Tk 350 billion) in Bangladesh.

Before the license being approved, the government has deposited its paid-up capital portion amounting to Tk 200 billion in the bank’s current account with the banking regulator on the day, according to the BB sources.

The 9-member BB board also approved former government secretary Dr Mohammad Ayub Miah as the chairman of the recently reconstructed seven-member board of the new unconventional bank.

It is also known that the Sammilito Islami Bank will officially start its operations from this week as all formalities have been completed. In fact, the final approval of the BB comes within 21 days after the regulator issued LoI (letter of intent).

Seeking anonymity, a BB official said, the board members of the central bank decided to issue a license to the newborn bank to protect depositors of the merged five banks – Social Islami Bank, Global Islami Bank, First Security Islami Bank, Union Bank and EXIM Bank.

Following the approval, the official said, the central is likely to issue license in favour of the bank today (Monday) and the bank will officially start its operations from this week.

“The bank also got name clearance from the RJSC (The Registrar of Joint Stock Companies And Firms) on the day as well,” the central banker said.

In a press statement issued after the board meeting by the BB, it stated that the new bank will start its journey as the largest state-operated and Islamic bank in terms of paid-up capital. The regulator firmly believes that it will make the depositors assured about the security of their deposits.

“No depositor will lose their money,” it said, mentioning that deposits amounting to Tk 0.2 million (two lakh) is being protected under the Deposit Protection Ordinance 2025 and start payback to the depositors shortly after the completion of the merger move.

Regarding the deposits amounting to more than Tk 0.2 million, the press statement said, the government will soon announce a special scheme regarding the payback.

It said the new bank will be operating under the intensive supervision of the banking regulator with utmost professionalism and efficiency to make it a dynamic, modern and competitive unconventional bank.

According to the BB merger-related roadmap, the new bank will have a paid-up capital amounting to Tk 350 billion of which the government will provide Tk 200 billion as equity. And the remaining Tk 150 billion would come from the deposit-insurance trust fund and institutional deposits.

The combined non-performing loans (NPLs) of the five banks are around Tk 1.47 trillion, which accounts for 77 per cent of their total loan disbursements.

Union Bank shares the highest percentage of such dud money at 98 per cent, followed by First Security Islami Bank (96 per cent), Global Islami Bank (95 per cent), Social Islami Bank (62 per cent) and EXIM Bank (48 per cent).