Staff Reporter :
A writ petition has been filed in the High Court challenging the government’s decision to merge five troubled private banks. The petition was submitted on Tuesday by Barrister Mahsib Hossain on behalf of investor Shahidul Islam.
The writ names the Bangladesh Bank Governor, Finance Secretary, and other relevant officials as respondents.
On October 9, the interim government’s advisory council approved merging First Security Islami Bank, Global Islami Bank, Union Bank, Exim Bank, and Social Islami Bank to form a new Sharia-based bank. Two names have been proposed for the new entity: United Islamic Bank and Sammilit Islamic Bank. Authorities said the bank will operate commercially and professionally.
The government has assured that no official or employee will lose their job, and depositors will retain their funds. The new bank will have an authorized capital of Tk 40,000 crore and a paid-up capital of Tk 35,000 crore, with all assets and liabilities of the five banks transferred to it.
The government will inject Tk 20,000 crore—Tk 10,000 crore in cash and Tk 10,000 crore via Sharia-compliant Sukuk bonds. Additionally, Tk 15,000 crore of institutional deposits will be converted into shares through a bail-in process, which allows part of creditors’ money to be converted into equity instead of being written off. These shares will be repaid as per the resolution plan.
Initially state-owned, the government plans to gradually transfer ownership to the private sector over five years. Bangladesh Bank expects that state ownership will reduce panic among customers and help small depositors access their funds quickly.
