The official journey of the new state-owned bank ‘Sammilito Islami Bank PLC’ has begun with the merger of five long-suffering Shariah-based banks.
The final licence of the bank was approved at the meeting of the board of directors of Bangladesh Bank on Sunday (November 30). The central bank confirmed this information in a press release.
After receiving the final license, former government secretary Mohammad Ayub Mia has been appointed as the chairman of the newly formed bank.
Bangladesh Bank said that as part of the reform program that started in September 2024 to restore good governance, accountability and discipline in the banking sector, Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank were brought under the Bank Resolution Ordinance 2025. Later, these banks were declared ineffective and administrators were appointed.
In the meeting of the Advisory Council on October 9, it was decided to establish a new state-owned bank by merging five troubled Islamic banks.
Then on November 9, Bangladesh Bank issued a Letter of Intent (LOI). As per the terms of the LOI, in addition to registration with the Registrar of Joint Stock Companies and Firms, the government share of Tk20,000 crore out of the bank’s paid-up capital of Tk35,000 crore has already been paid.
Bangladesh Bank says that this will be the largest state-owned Sharia-based bank in the country in terms of capital. Assuring depositors, the central bank said that deposits up to Tk2 lakh are completely safe as per the Deposit Protection Ordinance 2025 and will be paid soon after the merger.
The scheme for how deposits above Tk2 lakh will be paid will also be published soon.
The central bank hoped that this new bank will emerge as a modern, dynamic and competitive Shariah-based bank under intensive supervision and professional management in a short time.
