On 10 December, Belal Hossain visited Union Bank’s Panthapath branch expecting to withdraw Tk2 lakh from his Tk10 lakh deposit, as promised by Bangladesh Bank. He left empty-handed after being told no instructions had yet been issued.
Small businessman Nechar Hossain faced the same frustration at First Security Islami Bank, unable to access his savings to cover immediate liabilities.
Likewise, Monem Ahmed, trying to meet urgent family expenses at Social Islami Bank, was told to return in a month. “After the announcement, I thought I would at least get some relief. But in reality, nothing has changed,” he said.
These cases illustrate the predicament of millions of depositors affected by the merger of five Islamic banks – First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank and Union Bank – whose refunds have yet to begin.
Earlier, Bangladesh Bank stated that customers of the merged entity, Sammilito Islami Bank, would be able to withdraw deposits of up to Tk2 lakh by the end of November.
A later announcement suggested withdrawals could begin in the first week of December.
The five banks also conveyed the same information to customers. However, operations remain stalled because the central bank has not finalised the circular needed to release funds.
Recently, the central bank governor said payments would start in the second week of December. Yet, even as nearly half the month has passed, the refund process has not begun, leaving ordinary depositors in limbo.
Bangladesh Bank spokesperson Areif Hossain Khan told the media, “As per the plan, customers with balances of up to Tk2 lakh, including profit, will be able to withdraw the full amount. Those with deposits exceeding Tk2 lakh will receive a maximum of Tk2 lakh. However, we will not specify a fixed date, as announcing a date and starting payments could trigger a rush by depositors. Disbursement will begin very soon.”
Withdrawal rules
According to Bangladesh Bank sources, the Tk2 lakh facility will apply to a single account per customer, opened with a valid national ID.
Loans against deposits must first be settled, and a new profit rate will be set for any remaining balance.
A draft special refund scheme has been prepared. Up to Tk2 lakh will be paid in the first phase from the Deposit Insurance Fund, after which Tk1 lakh can be withdrawn every three months.
Exceptions will be made for depositors over 60 or those with life-threatening illnesses, who may withdraw any required amount. The restrictions aim to prevent mass withdrawals that could strain the bank.
To finalise the scheme, Bangladesh Bank has requested 27 types of depositor information from the five banks. Once verified, the scheme will be formally announced.
Legal requirements also restrict refunds to Tk2 lakh per depositor, regardless of multiple accounts or branches.
Currently, the five merged banks hold deposits of around Tk1.42 lakh crore from approximately 7.5 million customers, with loans of about Tk1.92 lakh crore, 77% of which are non-performing. To refund up to Tk2 lakh per depositor, Sammilito Islami Bank will need roughly Tk12,500 crore, pending the governor’s approval.
Meanwhile, Sammilito Islami Bank has begun operations at its head office in Sena Kalyan Bhaban, Motijheel, Dhaka.
Last Tuesday, an introductory meeting took place at Bangladesh Bank’s conference room between the bank’s Chairman Dr Mohammad Ayub Miah and the administrators.
Bangladesh Bank Governor Dr Ahsan H Mansur, four deputy governors, and other officials attended.
After the meeting, Dr Ayub Miah said the new bank’s primary goal is to restore depositor confidence.
Courtesy: The Daily Sun
