Sammilito Islami Bank PLC, formed by merging five troubled Islamic banks to overcome the instability in the country’s banking sector and restore confidence, has officially started its operations.
The bank’s operations began on Tuesday after receiving final approval and licence from Bangladesh Bank on Monday.
Bangladesh Bank said that this initiative will restore stability in the Islamic banking sector and speed up the process of returning deposits that have been stuck for a long time.
Deposits of up to Tk2 lakh will start being returned to customers from next week.
After that, a roadmap is being finalized for returning large deposits in phases.
The country’s largest government-owned Islamic bank was created by merging five banks — First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank and Union Bank.
Last Sunday, the merger was decided at a special board meeting of Bangladesh Bank chaired by Governor Dr. Ahsan H. Mansur. Later on Monday, the license of the new institution was handed over.
The paid-up capital of Sammilito Islami Bank PLC has been set at Tk35,000 crore.
Of this, the government will provide Tk20,000 crore, and Tk15,000 crore will come from the conversion of shares of defaulters.
The authorized capital of the bank has been kept at Tk40,000 crore – which is one of the largest capital structures in the country’s banking history.
Former secretary Mohammad Ayub Mia has taken charge as the chairman of the bank.
After taking charge, he said: “The launch of a new Islamic bank under government ownership is a positive message for the nation. Our main goal is to restore the trust of depositors. Sammilito Islami Bank will become a symbol of trust for the nation.”
After meeting the governor on Tuesday afternoon, he said that the main objective of the meeting was to review the vision, mission, laws and regulations and overall activities of the bank. The legal merger of the five banks and the establishment of it as a full-fledged bank will be taken forward.
Official work has begun at the head office set up in Sena Kalyan Bhaban in Motijheel.
Governor Dr. Ahsan H. Mansur will announce the official inauguration of the new bank, Bangladesh Bank officials said.
