Five merging banks begin repaying depositors
The five troubled banks under the process of being merged into the country's largest state-run Islamic lender began repaying depositors today, with no visible rush at their branches.
Most branches of the five lenders reported normal banking activity, hinting at growing depositor confidence in the newly formed Sammilito Islami Bank PLC.
For all latest news, follow The Daily Star's Google News channel. The five banks are Export Import Bank of Bangladesh (EXIM Bank), First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank.
Signboards bearing the name Sammilito Islami Bank have been installed at the branches and head offices of the merging lenders, while their original signboards have also been kept in place.
Under instructions from the Bangladesh Bank (BB), customers are currently allowed to withdraw up to Tk 200,000 from their savings and current accounts.
Visits to several branches in Dhaka's Motijheel area found no unusual crowd, with customers seen carrying out regular banking transactions.
At the corporate branch of Social Islami Bank in Motijheel, only five to six customers were seen conducting transactions.
Muhammad Asaduzzaman Miah, manager of the branch, told The Daily Star that clients are permitted to withdraw funds as per their demand, but many are choosing not to do so.
"I think customers are trusting the bank, as it is being merged into a state-run institution," he said.
He added that the branch holds deposits of around Tk 300 crore, the majority of which belong to individual customers.
Many depositors visited branches on the day to inquire about the status of their deposits but expressed no intention to withdraw funds, said Muhammad Badiuzzaman Dider, administrator of First Security Islami Bank.
Dider, who is also an executive director of the BB, said some customers have requested withdrawals, but the process may take time due to certain eligibility criteria.
"Normal banking operations have resumed, and there is no pressure from customers," he said.
On December 30, BB introduced a comprehensive Bank Resolution Scheme, outlining priority access to deposits at the five merging shariah-based banks and the mechanism for refunding remaining funds over time.
Under the scheme, small depositors are given the highest priority. Individuals with deposits of up to Tk 200,000 are fully protected and may withdraw their money at any time.
Special provisions have also been made for vulnerable individuals. Depositors suffering from cancer or requiring kidney dialysis will face no withdrawal restrictions, regardless of the size of their deposits, according to the refund framework.
Last month, BB granted the final licence to Sammilito Islami Bank.
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