Depositors Can Now Withdraw Up to Tk 10 Lakh for Emergencies from Sammilito Islami Bank

Depositors of the newly formed Sammilito Islami Bank can now withdraw up to Tk 10 lakh from their accounts to cover urgent needs for medical expenses for immediate family members.

The Bangladesh Bank Board of Directors chaired by Governor Md Mostaqur Rahman approved this decision on Wednesday to ease sudden financial burdens on customers. Previously withdrawals were strictly limited to the account holder's personal medical treatment. The expanded facility covers medical care for parents, children, siblings and spouses as well as other pressing emergencies.

This rule applies to depositors of the five troubled Shariah-based banks First Security Islami, Social Islami, Union, Global Islami and Exim Bank that were merged last year by the interim government to establish Sammilito Islami Bank.

The merger was designed to address severe financial distress within these institutions. Central bank data from last December revealed that the five banks held Tk 1,95,000 crore in outstanding loans against just Tk 47,900 crore in collateral. Non-performing loans (NPLs) accounted for a staggering 87.43 percent of their total portfolio.

To stabilize the new entity, it was launched with an authorized capital of Tk 35,000 crore. The government injected Tk 20,000 crore, while the remaining Tk 15,000 crore is being allocated as shares to depositors.

Alongside the expanded withdrawal limit, a central bank reimbursement scheme is actively paying out individual deposits of up to Tk 2 lakh using the Deposit Insurance Fund. To date Bangladesh Bank has disbursed Tk 3,887 crore to 822,000 depositors with First Security Islami Bank customers accounting for Tk 1,600 crore of the total payouts.