Written by The Banking Post
Former senior secretary Dr Mohammad Ayub Mia has been appointed the first chairman of Sammilito Islami Bank PLC, the new institution created through the merger of five financially distressed Islamic banks.
Bangladesh Bank approved his appointment on Sunday and confirmed that the bank—now officially licensed—will begin full operations this week.
A Merger Driven by Weak Finances
Sammilito Islami Bank was formed by combining First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank, after years of liquidity stress and poor financial performance across the five lenders.
Bank officials said the institutions failed to recover despite repeated liquidity support. Their share prices fell sharply on the stock market, and the Net Asset Value (NAV) of almost all five banks slipped into negative territory—an indicator of severe financial deterioration.
Regulator Pushes for Stability
The central bank fast-tracked the consolidation to stabilise the banks’ balance sheets and restore confidence in the Islamic banking segment. Bangladesh Bank had earlier granted preliminary approval for the merger on November 9 following a request from the Ministry of Finance.
With the chairman now appointed, Sammilito Islami Bank is set to launch full-scale operations within days, marking one of the most significant bank restructurings in the country’s financial sector.
