Business Report :
Sammilito Islami Bank PLC the country’s largest state-owned Islamic bank created through the merger of five financially distressed banks has officially begun operations, marking a major step toward restoring stability and public confidence in the Islamic banking sector.
The new bank commenced operations on Tuesday, a day after receiving its final approval and licence from Bangladesh Bank. The central bank said the initiative aims to stabilise the sector and accelerate the long-delayed process of returning stuck deposits to customers.
According to Bangladesh Bank, clients with deposits of up to Tk2 lakh will start receiving their money from next week. A detailed roadmap is being finalised to return larger deposits in phases, giving priority to small and vulnerable account holders first.
The bank was formed by merging First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank and Union Bank, all of which had been facing severe liquidity and governance challenges. The merger decision was finalised last Sunday at a special board meeting chaired by Bangladesh Bank Governor Dr. Ahsan H. Mansur. The operating licence for the new institution was formally handed over on Monday.
Sammilito Islami Bank PLC has been established with a massive paid-up capital of Tk35,000 crore one of the largest in the country’s banking history. Of this, the government will inject Tk20,000 crore, while Tk15,000 crore will come from converting the shares of loan defaulters.
The authorised capital has been fixed at Tk40,000 crore, underscoring the scale of the restructuring.
Former secretary Mohammad Ayub Mia, who has taken charge as the bank’s chairman, described the launch as a significant turning point.
“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,” he said after assuming office.
Following a meeting with the governor on Tuesday afternoon, Ayub Mia said discussions focused on reviewing the bank’s vision, mission, regulations, and operational framework. He added that efforts are now underway to legally consolidate the five institutions and operationalize the bank as a full-fledged entity.
The bank has already begun official activities from its head office at Sena Kalyan Bhaban in Motijheel, a traditional financial hub.
Bangladesh Bank expects the newly merged institution to play a significant role in stabilising the Islamic banking sector.
The process of returning deposits of up to Tk2 lakh is set to begin next week, while a roadmap is being prepared for reimbursing larger deposits.
