Depositors of Sammilito Islamic Bank to get refunds from 7 September
Sammilito Islami Bank will begin returning the principal deposits of individual account holders from 7 September.
Initially, customers will be allowed to withdraw or encash their full deposited principal amount in a single transaction. In this case, they will not receive any profit on the amount.
Branches will start accepting applications for the withdrawal from Tuesday.
In a special circular issued by the bank’s head office, all departmental and zonal heads and branch managers were instructed to make the necessary preparations and follow the relevant guidelines.
The circular was signed by the bank’s Deputy Managing Director and Chief Coordinator of Operations, AF Shabbir Ahmad.
According to a decision announced by Bangladesh Bank, regular transactions for individual customers are scheduled to resume from 1 September. However, it will require a few days to complete the preparations, including requisitioning cash for branches and sub-branches, ensuring cash supplies from Bangladesh Bank and putting in place secure cash management.
The bank has therefore decided to begin returning deposits in full from 7 September , according to officials.
The circular said customers will be able to withdraw their principal deposits from Al-Wadeeah current accounts, Mudarabah savings accounts and various term deposit accounts, including MTDRs and DPS. Customers who keep their accounts open will continue to receive profits at the predetermined rates under their agreements. Once the bank’s overall operations resume fully, customers will be able to deposit and withdraw any amount, including profits.
Meanwhile, the bank has instructed its branches to observe 1 September as a special day to help restore customers’ confidence and provide reassurance as the process of returning deposits begins.
The day will be observed as a day for rebuilding customers’ trust in the bank. Branches and sub-branches have been instructed to be neatly decorated, while officials will attend in designated and formal attire. Customers are to be welcomed with flowers or gifts, with senior citizens, women and customers with disabilities receiving priority service.
Branches have also been instructed to maintain a clean and positive environment and give the highest priority to service quality and customer satisfaction. They have also been asked to record video footage of customer service activities.
Sammilito Islamic Bank was formed during the interim government by merging EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank after the institutions remained unable to return deposits for an extended period amid various irregularities and fraud allegations.
The five banks have around Tk 1,420 billion in deposits held by nearly 7.6 million depositors. Of this, individual customers hold around Tk 1.5 billion in savings accounts. Of the five banks’ total loans of Tk 1,920 billion, 86 per cent are currently classified as defaulted loans. The banks also have a capital shortfall of more than Tk 1,500 billion.
The state-owned bank began operations in November last year with an authorised capital of Tk 400 billion and paid-up capital of Tk 350 billion. The government has provided Tk 200 billion of the paid-up capital, while the remaining Tk 150 billion will be issued as shares to depositors.