Sammilito Islami Bank: 6,000 customers get Tk 2.5 billion back on first day

Sammilito Islami Bank PLC, formed through the merger of five Shariah-based banks, has started returning to normal banking operations. The bank began returning depositors’ money on Monday.

Those who had applied for the return of their deposits on the first day of applications received their money on Monday. According to sources concerned, the bank returned Tk 2.5 billion (250 crore) to 6,000 customers on the first day.

In addition to returning deposits, the bank also began online fund transfers on Monday. As a result, the operations of Sammilito Islami Bank have gained some momentum after a long period.

First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and EXIM Bank were merged to form Sammilito Islami Bank. The former interim government initiated the move.

Although Sammilito Islami Bank has been formed, the branches of the five banks are still being operated separately. The five merged banks have a total of 761 branches across the country.

On the first day of the deposit return process, customers withdrew money from their respective branches. The process of returning money to all types of depositors began on Monday following a government decision. Before that, applications were collected from customers interested in withdrawing their deposits from 1 to 6 September.

Meanwhile, Bangladesh Bank has allocated Tk 50 billion (5,000 crore) to the bank to return depositors’ money. A total of 74,000 depositors of the bank applied to withdraw Tk 39.25 billion (3,925 crore) within the stipulated period.

Bangladesh Bank allocated the necessary funds to the bank so that no customer would leave empty-handed after coming to withdraw money. The government took full ownership of the bank after declaring the value of all shares in the five merged banks to be zero.

Asked about the matter, Sammilito Islami Bank Managing Director (MD) Md Abedur Rahman Sikder told Prothom Alo that arrangements had been made to return the money to all customers who had applied.

However, not all those who had applied to receive their money on the first day came to the bank to collect it. When the bank contacted many customers, they said they intended to keep their money deposited. Others withdrew their money and deposited it back into the bank shortly afterwards, he added.

Meanwhile, visiting several branches of the bank in capital’s Gulshan, Mohakhali, Banani and Motijheel areas on Monday it was found that sufficient funds had been arranged at all branches under the management of the bank’s head office and the respective branches.

Many customers began queuing at the branches from the morning to withdraw money. Branch officials welcomed them with flowers. All customers who had submitted their applications properly were given their money back.

ABM Mokarram Mahmud, manager of the Uttara branch of the merged Union Bank, told Prothom Alo that eight customers applied to withdraw money on the first day. Four of them withdrew their money, while the others were contacted. Plus, customers who have profits accumulated in their accounts are also able to withdraw money.

After the fall of the Awami League government in August 2024, the former interim government merged the five troubled Shariah-based banks mentioned above to form Sammilito Islami Bank.

Of the five banks, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank were controlled by controversial Chattogram businessman Saiful Alam, also known as S Alam. EXIM Bank was controlled by Nassa Group Chairman Nazrul Islam Mazumder. Both were known as businessmen close to ousted prime minister Sheikh Hasina.

Large-scale loan irregularities took place at the banks while they were under the control of S Alam and Nazrul Islam Mazumder. Following the political change, domestic and international financial audits uncovered these irregularities. According to audit findings, 80 per cent of the loans of the five merged banks had been siphoned off.

This left the banks in financial distress, preventing them from returning customers’ money. In this situation, the former interim government took steps to merge the five banks. The ownership of the previous owners was cancelled and transferred to the government.

After taking office in February, the BNP government has also been advancing the bank’s merger process.