Merger of 5 banks: Depositors may be allowed to withdraw up to Tk 200,000

The five Shariah-based Islamic banks undergoing merger are expected to be renamed “Combined Islamic Bank” within the next few days.

Following the renaming, all signboards of the five banks across the country will be replaced. Before the signboards are changed, Bangladesh Bank will announce when depositors may begin withdrawing their money.

Sources at Bangladesh Bank have confirmed these.

Bangladesh Bank is preparing to announce a programme or scheme for the newly consolidated bank, including information about the return of depositors’ funds.

According to relevant sources, the first phase will include a declaration that each depositor will be able to withdraw up to Tk 200,000 under the deposit insurance fund.

Initially, this amount will be disbursed against one account per National Identity Card (NID). The central bank is reportedly preparing to start the disbursement process next week.

The Board of Directors of Bangladesh Bank, chaired by governor Ahsan H Mansur, granted final approval for “Combined Islamic Bank PLC” last Sunday.

The new bank will acquire the five troubled Islamic banks: First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank and Union Bank.

Among these, EXIM Bank was chaired by Nazrul Islam Mazumder, while the remaining four were under the control of the Chattogram-based S Alam Group.

Due to rampant corruption, the banks faced severe financial crises. Customers have been unable to withdraw their money, and employees have not been receiving their full salaries.

Meanwhile, the new bank’s head office has already been opened at the Sena Kalyan Bhaban in Motijheel, Dhaka.

The paid-up capital of Combined Islamic Bank has been set at Tk 35,000 crore (350 billion). Of which Tk 20,000 crore (200 billion) will come from the government, and the remaining Tk 15,000 crore (150 billion) from depositors’ shares.

The authorised capital has been set at Tk 40,000 crore (400 billion). The government has already released its Tk 20,000 crore (200 billion) capital contribution.

According to Bangladesh Bank officials, with the government’s funds secured and approval for the new bank in place, there are no remaining obstacles to completing the consolidation. The process of appointing independent directors, a managing director, and a company secretary is now underway.

Before that, the governor is scheduled to hold a press conference on Thursday to announce detailed plans for reimbursing depositors.

It has been learned that many depositors hold multiple accounts under the same NID across the five banks. There are also accounts without any NID at all. For now, only one account linked to an NID will be eligible for the Tk 200,000 withdrawal facility. This benefit will apply only to individual depositors.

Larger withdrawals will be allowed gradually in subsequent phases. No decision has yet been announced regarding how long the Bangladesh Bank-appointed officials will continue overseeing operations at the five banks.

Combined Islamic Bank to become a symbol of trust

Chairman of Combined Islamic Bank PLC and former secretary, Mohammad Ayub Mia on Tuesday met with the central bank governor and visited the new headquarters prepared at Sena Kalyan Bhaban.

Speaking to journalists after his meeting with the governor, Mohammad Ayub Mia said that the launch of a government-owned Islamic bank is good news for the nation.

He added that a technical team is already working to ensure proper management of the bank. The primary objective will be to restore depositors’ confidence.

Combined Islamic Bank, he said, will become a symbol of trust for the nation.