STAR BUSINESS REPORT

Sammilito Islami Bank, the proposed largest shariah-based state-run bank to be formed by merging five troubled ones, is going to be launched within the next week, said Bangladesh Bank Governor Ahsan H Mansur yesterday.

The bank will begin operations with Tk 35,000 crore in paid-up capital, the highest in Bangladesh, he said at an economic conference at Pan Pacific Sonargaon Dhaka organised by the business daily Bonik Barta.

His comments came as the BB board is scheduled to sit for a meeting today, where the proposed new bank is expected to receive approval. After the approval, the central bank will issue a letter awarding the bank its licence.

Earlier on November 9, the BB issued a preliminary licence and the new entity received name clearance from the Registrar of Joint Stock Companies and Firms (RJSC).

Later in the day, responding to The Daily Star, Mansur said depositors will be able to withdraw their money after the launch of the new bank.

Initially, depositors of all the five banks will be able to withdraw a maximum of Tk 2 lakh immediately, and then every three months, they can receive a certain portion of their deposits, he said.

The BB chief said all the accounts in those banks will be operational as will the branches of these banks.

“Depositors will get interest at the market rate on their deposits and realise the interest after the launch of the new bank,” he said, but added that they will be unable to realise the interest accrued against their savings in the past.

As part of the move, the central bank has drawn up a detailed roadmap outlining specific timelines for the repayment process. This will be announced soon through an official gazette, with the repayment schedule taking effect from the date specified.

To ensure investment income for the new bank, the new bank is expected to invest Tk 10,000 crore in the shariah-based sukuk bond. This is expected to generate Tk 800 crore-Tk 900 crore in income for the bank.

“We are not going to cut any staff in these banks. But their salaries and benefits will be rationalised,” he said, replying to another question. The existing employees of the five banks — nearly 16,000 — may see their salaries reduced by 20 percent.

On November 5, the BB took over the five troubled shariah-based banks — First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank — on a temporary basis by dissolving their boards as part of the formal merger process.