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Crisis-ridden Global Islami Bank (GIB) has accepted the merger and acquisition (M&A) option initiated by Bangladesh Bank (BB) while Social Islami Bank Limited (SIBL) disagrees to welcome such a bailout package launched by the regulator for banking sector revamp.

Instead of embracing the M&A move, the SIBL sought time from the central bank to turnaround from the severe liquidity crunch in a meeting with Bangladesh Bank Governor Dr Ahsan H. Mansur and his deputies at the BB headquarters on Thursday.

Like other days, the BB governor virtually joined the meeting with board of the directors of the two shariah-based lenders to listen their plans and views regarding the BB-rolled out M&A moves as remedy of the financially weak banks.

Emerging from the meeting, SIBL founding chairman Major (Retd.) Dr. Md. Rezaul Haque said they don’t want to get involved in the merger process anyway.

“Certainly, we will be able to turnaround from the current situation. We need time for the rebound and the responsibility of the bank’s operation need to be given to the shareholding directors, not to the independent directors,” he said without giving any clue over how long time to be needed for the turnaround.

The bank’s chairman professor Mohammad Sadiqul Islam said the controversial S Alam Group has taken away assets amounting to over Tk 60 billion in various names, which put serious pressure on the bank’s liquidity management.

Meanwhile, GIB chairman Mohammed Nurul Amin told reporters that they have accepted BB’s bank resolution measure to revive the struggling commercial lenders.

“I don’t know what steps the regulator will take? Is it merger, liquidation, recapitalisation or other ways?. It all up to the government but the depositors will be benefited,” he said.

According to Mr. Amin, the bank’s current loan portfolio stands at Tk140 billion, of which Tk120 billion was borrowed by S Alam Group through various entities. Most of these loans have been defaulted, with collateral covering less than 25 per cent of the exposure.

The BB plans to apply bank resolution ordinance into the five unconventional banks — Union Bank, FSIB, EXIM, SIBL and GIB. Of them only two..EXIM and SIBL denied in welcoming the BB’s planned resolution.