Depositors blockade for deposit return

Staff Reporter :

Depositors of five banks have staged a blockade outside Bangladesh Bank to recover their savings with full profits instead of the proposed “haircut”.

The protesters formed a human chain and held a rally in front of the central bank’s headquarters in the city’s Motijheel area on Thursday.

Later, around 12:30pm, they tried to enter the central bank premises, but were stopped at the gate by security personnel. When the protesters continued their attempts to enter, the gate was shut.

During the protest, demonstrators used a handheld megaphone to request permission to enter. They announced that they would not leave without meeting the governor.

Following intervention by police officers, the protesters briefly moved away from the gate, but soon returned and took up positions again in front of it.

The entrance gate of the central bank was then closed once more and police were deployed in front, with the protesters lining up opposite them.

Alif Reza, a convener of the protest, told bdnews24.com: “They are now offering us 4 percent profit after cancelling the haircut policy. We want full profits and all our money returned quickly. We wanted to submit a memorandum to the governor, but we were not allowed to.”

Another protester, Zainal Abedin, said: “I have an FDR worth Tk 10 million. Now they want to give me only Tk 400,000 as profit. I cannot accept that. They are continuing to take their salaries and bonuses (without any disruption).”

Protesters were still seen standing in front of the entrance at 2pm.
Five crisis-hit private Shariah-based banks—First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank—were merged last year to form the state-owned Sommilito Islami Bank.

After the merger, the central bank initially announced that no profits would be given against deposits for the past two fiscal years, with depositors taking a “haircut” reduction in profits. However, Bangladesh Bank later reversed the decision following protests.

Responding to questions about the protesters, central bank spokesperson Arif Hossain Khan said: “Their protest is justified. But the reality is that Sommlito Islami Bank is facing a liquidity crisis. If all the money is paid back at once, the bank will not be able to recover.”

“It would require Tk 1.5 trillion to repay all deposits. The bank simply does not have that much. Its capital is only about Tk 350 billion. We request patience from depositors, as the government has taken responsibility for the bank and they will get their money back eventually.”

After cancelling the haircut policy, the bank is currently offering 4 percent profit for the past two years. The protesters, however, are demanding full profits.

Spokesperson Arif said, “The relevant department of Bangladesh Bank is reviewing their demands. Let’s see what recommendations come out of the assessment.”