Depositors of Sammilito Islami Bank, formed through the merger of five Islamic banks, have been allowed to withdraw funds starting today (January 1) under a resolution scheme approved by Bangladesh Bank.
Initially, depositors can withdraw up to Tk2 lakh from their current and savings accounts.
The five banks merged to create the new entity are First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank.
According to Bangladesh Bank, the resolution scheme clearly outlines a timeline for deposit repayments while ensuring protection for general depositors. The central bank has assured that all depositor funds remain safe.
Under the scheme, deposits of up to Tk2 lakh held by general customers are fully protected under the Deposit Protection Act and can be withdrawn at any time from the effective date of the merger.
Deposits exceeding this amount will be repaid in installments, with withdrawals from current and savings accounts following a structured schedule that may take up to 24 months for full settlement.
As per the withdrawal timeline, depositors with balances above Tk2 lakh will be able to withdraw the first Tk1 lakh after three months of implementation.
Subsequently, Tk1 lakh can be withdrawn after 6, 9, 12, 15, 18, and 21 months, with the remaining balance becoming withdrawable after 24 months. The same schedule will apply to institutional depositors. Bangladesh Bank has also introduced special humanitarian provisions for depositors suffering from serious illnesses, including cancer patients and those undergoing kidney dialysis.
Such depositors will be allowed to withdraw funds beyond the prescribed limits and timelines to meet medical needs.
The scheme includes directives for term and fixed deposits. Depositors will be eligible for investment or loan facilities of up to 20% against such deposits. Fixed deposits of various tenures will be automatically renewed or converted into longer-term deposits, while deposits with tenures exceeding four years will be payable upon maturity.
Bangladesh Bank has completed the merger process, forming Sammilito Islami Bank with an authorised capital of Tk40,000 crore and a paid-up capital of Tk35,000 crore.
The government has already injected Tk20,000 crore, which will be treated as Class ‘ka’ shares under the resolution framework.
In addition, Tk7,500 crore from fixed deposits of banks and financial institutions that were depositors of the five banks will be converted into Class ‘kha’ shares, while another Tk7,500 crore from fixed deposits of other institutional depositors will be converted into Class ‘ga’ shares.
However, the provision for converting deposits into shares will not apply to educational institutions, religious institutions, hospitals, employee provident and gratuity funds, joint venture companies, multinational companies, banks and financial institutions under resolution, and foreign embassies.
Deposits held by these entities cannot be converted into shares, and any clarification regarding the scheme will be subject to the final decision of Bangladesh Bank.
Bd-pratidin English/ ANI
