The Bangladesh Bank (BB) has initiated a major overhaul of the country's troubled Islamic banking sector by merging five failed lenders—First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and Exim Bank—into a single new entity: Sammilito Islami Bank.
BB Governor Ahsan H Mansur confirmed that the central bank is currently seeking strategic foreign investors for the newly formed institution, with an eventual goal of an Initial Public Offering (IPO). The announcement was made at the Bangladesh Islamic Finance Summit 2025.
The new bank will be strengthened by a fresh public fund injection, making it publicly owned initially. Mansur expects Sammilito Islami Bank to become the strongest in the sector, starting with the highest level of capital, specifically Tk 35,000 crore in paid-up capital. This high liquidity is anticipated to allow the bank to turn a profit even in its first year. The merger was approved under the Bank Resolution Ordinance 2025, and administrators have already been appointed to oversee the transition.
The central bank stated that shareholders of the five merging lenders will receive nothing, as the net asset value of those banks is already negative. Governor Mansur attributed the state of the banks to being the "biggest casualty of plundering" in the banking system over the past 15 years, necessitating government intervention to protect the lenders.
Speakers at the summit emphasized the need for improved governance and transparency in Islamic finance, urging the sector to embrace global best practices and expand beyond conventional banking to include Islamic insurance, non-bank financing, and digital banking to contribute effectively to economic growth and social justice.
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