Bangladesh Bank’s 2025 Scheme for Samirit Islamic Bank
Bangladesh Bank has finalized a resolution plan for Samirit Islamic Bank PLC, formed by merging five struggling Sharia-compliant banks. This scheme aims to gradually return funds to depositors.
The central bank developed this approach to safeguard depositors and maintain financial stability after a series of fraud incidents, liquidity crises, and high default rates disrupted these banks’ operations.
A copy of the resolution plan was obtained by The Business Standard.
Sammilito Islami Bank was established as a result of merging EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank.
How Deposit Withdrawals Will Work
The timeline for deposit withdrawal varies according to the amount each customer has. Deposits up to Tk 200,000 are fully secured and can be withdrawn without limitations from the new bank.
For deposits over Tk 200,000, withdrawals will occur in installments. Customers can initially access Tk 200,000 anytime. For every additional Tk 10 million, they can withdraw every three months. The remaining balance can be accessed 24 months post the Plan Effective Date.
Fixed Deposits
Depositors with fixed deposits (FDR) of more than three months cannot withdraw before maturity. Under the new guidelines, these deposits will automatically renew. A three-month fixed deposit will be renewed three times. For deposits of one to two years, they’ll be regarded as fixed deposits for three years, and those held for over four years can only be accessed once the term concludes.
Special Considerations for Seriously Ill Depositors
The scheme includes provisions for depositors facing serious health issues, such as cancer or requiring dialysis. These individuals can withdraw funds beyond the standard limits depending on their needs.
Stock Conversion for Institutional Depositors
Most fixed deposits held by banks and financial institutions (approximately Tk 7.5 billion) will be converted into class B shares of Samirit Islamic Bank. For other institutions and trusts, some of their deposits might also transform into shares, potentially yielding dividends in the future.
Why Was the Resolution Necessary?
Bangladesh Bank noted that repeated liquidity support over the past year had not led to significant financial improvements for the five banks. Issues like poor governance and extensive loan defaults have hindered traditional repayment options for depositors.
Consequently, the central bank decided to merge these banks under the Bank Resolution Ordinance 2025. The authorized capital for Samirit Islamic Bank is set at Tk 4,000 billion, with a paid-up capital of Tk 3,500 billion. The bank is currently governed by a seven-member board of directors appointed by Bangladesh Bank.
