Business Report :
The government may consider compensating small investors affected by the merger of five crisis-ridden Islamic banks, Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said on Monday.
Speaking to reporters at the central bank headquarters, Khan said authorities were aware of the concerns of general investors holding shares in these banks. “If small and affected investors apply to the government, their situation may be considered within the government’s capacity,” he said.
He added that the proposal reflects a “humanitarian approach,” allowing decision-makers to consider the issue “beyond conventional accounting rules.”
Background of the merger
The statement comes after Bangladesh Bank issued a preliminary licence (Letter of Intent) for Sammilito Islami Bank, to be formed through the merger of First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank.
These banks have faced severe liquidity shortages and high levels of non-performing loans (NPLs), totaling around Tk 1.47 trillion, or 77percent of total lending. Union Bank has the highest NPL ratio at 98percent, followed by First Security Islami Bank (96percent), Global Islami Bank (95percent), Social Islami Bank (62percent), and EXIM Bank (48percent).
Regulatory process underway
Khan said the legal process for the merged bank has begun. The government will first apply to the Registrar of Joint Stock Companies and Firms (RJSC) to register Sammilito Islami Bank, including its board members and shareholding structure.
Once approved, the new entity will seek recognition from Bangladesh Bank under the Banking Companies Act. “Operations will begin only after Bangladesh Bank grants approval,” he added.
Composition and capital structure
The merged bank will have a paid-up capital of Tk 350 billion, with the government providing Tk 200 billion and Tk 150 billion from the deposit insurance trust fund and institutional deposits.
The seven-member board will be led by Nazma Mobarek, Financial Institutions Division secretary, along with six senior secretaries from key ministries, giving the government full control.
Investor confidence and next steps
Analysts said potential compensation could restore confidence among retail investors affected by the banks’ prolonged crisis.
If completed successfully, the merger will be Bangladesh’s first large-scale state-led consolidation in Islamic banking, aimed at stabilising troubled institutions. Final approvals from the RJSC and Bangladesh Securities and Exchange Commission (BSEC) are expected soon, paving the way for Sammilito Islami Bank to begin operations.
