Sammilito Islami Bank files 10,000 cases for loan recovery
State-owned Sammilito Islami Bank PLC has filed nearly 10,000 lawsuits to recover defaulted loans as Bangladesh Bank (BB) steps up measures to protect depositors’ interests and strengthen the country’s largest Shariah-based lender.
The update was revealed during a review meeting held at Bangladesh Bank headquarters between the central bank governor and officials from the Bank Resolution Department (BRD). The session evaluated the progress of the bank’s loan recovery, reconstruction, and overall operations.
Central bank officials confirmed that additional cases are currently being processed as part of the ongoing drive to recover stuck funds. Alongside traditional litigation, the bank is utilizing out-of-court settlement frameworks including Exit Policies and Alternative Dispute Resolution (ADR) to accelerate recovery timelines.
The central bank’s Bank Resolution Department is closely tracking the progress of these legal actions while overseeing broader institutional integration.
Additionally, the meeting reviewed efforts to pinpoint individuals involved in financial irregularities, loan fraud, and asset misuse under the bank’s former ownership and management.
Officials noted that a comprehensive forensic audit launched to identify responsible parties is now in its final stage.
The authorities expect that intensified legal action and alternative dispute resolution mechanisms will accelerate loan recovery and help bring the bank’s stuck funds back into productive sectors.
The meeting also reviewed the progress of the bank’s restructuring, including reconstitution of its board with emphasis on independent directors, appointment of a CEO effective July 16, 2026, and organisational adjustments involving around 16,000 employees. Work is also underway to integrate the Core Banking System (CBS), SWIFT and RMA infrastructure of the five banks under a unified framework.
Bangladesh Bank said it is closely monitoring the bank’s loan recovery, case disposal, governance, human resource management, branch rationalisation and technological integration.
Sammilito Islami Bank PLC started operations with Tk 35,000 crore in capital as the country’s largest state-owned Shariah-based Islamic bank.
Ensuring transparency, accountability and good governance in the management of its assets and deposits is one of Bangladesh Bank’s key priorities, the central bank said.
