Depositors can withdraw money from Sep 7

Sammilito Islami Bank will start normal banking transactions on September 1 and depositors will be able to withdraw money as per their demand from September 7.

Initially, customers will be allowed to withdraw or encash their full deposited principal amount in a single transaction.

In this case, they will not receive any profit on the amount. Branches will start accepting applications for the withdrawal from Tuesday.

Those who keep their accounts active will receive profits at the predetermined rates according to the terms of their agreements, it added.

The bank’s head office has issued a special circular outlining necessary preparations and guidelines for all divisional heads, zonal heads, and branch managers.

The directive was signed by bank’s Deputy Managing Director and Chief Coordinator of Operations AF Sabbir Ahmed.

While Bangladesh Bank had previously announced the resumption of normal transactions for individual customers starting on September 1, the bank requires a few additional days to finalise preparations.

These include sending cash requisitions to branches and sub-branches, ensuring adequate cash supply from the central bank, and establishing a risk-free cash management system.

Consequently, the fully-fledged refund process will commence on September 7.

According to the directive, customers can withdraw their principal funds from Al-Wadia current accounts, Mudaraba savings accounts, and various term deposits, such as MTDR and DPS.

However, depositors who choose to keep their accounts active without withdrawing will continue to receive profits at their pre-determined contractual rates.

Once the bank’s overall operations fully resume, customers will be able to deposit and withdraw any amount, including profits.

To restore lost trust and reassure customers ahead of the payout process, bank authorities have instructed branches to observe September 1 as a special day for rebuilding customer confidence.

Officials have been directed to decorate branches and sub-branches, wear formal and decent attire, and welcome customers with flowers or gifts.

Priority services must be ensured for senior citizens, women, and persons with disabilities. Branches are required to maintain a clean, positive environment, maximise customer satisfaction, and record video footage of customer service activities.

Sammilito Islami Bank was formed during the interim government by merging EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank.

The merger took place after these institutions failed to return customer deposits for a prolonged period due to widespread financial irregularities and fraud.

The five merged banks hold Tk 1,42,000 crore belonging to approximately 76 lakh depositors, with about Tk 15,000 crore held in individual savings accounts.

A staggering 86 percent of the Tk 1,92,000 crore total loans across these banks are currently defaulted, resulting in a capital shortfall of over Tk 1.5 lakh crore.

Operating as a state-owned bank since November last year, Sammilito Islami Bank has an authorised capital of Tk 40,000 crore and a paid-up capital of Tk 35,000 crore.

The government provided Tk 20,000 crore of the paid-up capital, while shares will be issued to depositors against the remaining Tk 15,000 crore.