Depositors of Five Islamic Banks to Lose Two Years of Profits

This measure is part of the ongoing 'Bank Resolution Scheme' aimed at stabilizing troubled financial institutions.

These five banks are currently being merged to form a new entity named 'Sammilito Islami Bank.' According to the central bank's letter, no profit will be calculated on deposits for the period from January 1, 2024, to December 28, 2025. The final balance of all accounts will be determined after deducting the profits for these two years and applying a specific 'haircut.' Once the merger is finalized, the original five banks will gradually cease to exist.

The newly formed Sammilito Islami Bank will have an authorized capital of BDT 40,000 crore, with the government already providing BDT 20,000 crore as paid-up capital. Additionally, a significant portion of institutional fixed deposits will be converted into shares. Regarding withdrawals, deposits up to BDT 200,000 can be withdrawn at any time, but for higher amounts, depositors can only withdraw a maximum of BDT 100,000 every three months. The head office of the new bank will be located at the Sena Kalyan Bhaban in Motijheel, Dhaka.