Five Islamic banks officially handed over to Sammilito Islami Bank

Sammilito Islami Bank has officially taken control of the remaining two banks—Union Bank and Global Islami Bank—completing the handover of all five Shariah-based banks being merged into the new institution.

The handover took place at a ceremony at Bangladesh Bank on Thursday (August 13), after which the administrators of Union Bank and Global Islami Bank were removed.

Earlier, Sammilito Islami Bank took control of EXIM Bank on June 30, followed by Social Islami Bank on August 6 and First Security Islami Bank on August 10.

The five banks had faced serious financial problems, including allegations of irregular lending and large-scale loan defaults. Several of them had links to influential business groups during the previous government.

Following the fall of the Sheikh Hasina government after the 2024 mass uprising, details of financial irregularities at the banks emerged. A large portion of their loans became classified, leaving the banks struggling to return depositors’ money. Bangladesh Bank provided emergency funding, but the situation did not improve enough, leading to the decision to merge the five banks.

Bangladesh Bank issued a licence for Sammilito Islami Bank on November 30 last year, beginning the formal merger process.

The new bank is currently owned by the government, although there are plans to eventually transfer ownership to the private sector. It has an authorised capital of Tk 40,000 crore and paid-up capital of Tk 35,000 crore.

Of the paid-up capital, the government is providing Tk 20,000 crore, while the remaining Tk 15,000 crore will come from the deposit insurance fund.