Published:  08:52 AM, 10 October 2025

Merger of five banks approved

Merger of five banks  approved
 
The interim government has approved a proposal of merging five troubled private Shariah-based Islami Banks to form a single new bank. The approval was given at the meeting of Advisory Council at the Chief Adviser's Office (CAO) in the capital with Chief Adviser Professor Muhammad Yunus in the chair.

The banks involved in this merger are First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank. The merged entity will initially have an authorised capital of Tk 400 billion, with paid-up capital estimated at Tk 350 billion.

"A significant decision was made at today's meeting. To ensure financial sector stability and strengthen Islamic banking, a proposal has been approved to merge five troubled banks into one new Shariah-based bank," Chief Adviser's Press Secretary Shafiqul Alam said at a briefing at the Foreign Service Academy following the meeting.

Two names have been proposed for the new bank: United Islamic Bank or Sammilito Islamic Bank.

According to the plan, a strategic partner will be identified within three years and the bank will be transferred to the private sector within five years.

"No employee will lose their job, and no depositor will lose their savings through this merger. This move will enhance financial stability, transparency, and integrity in the county's banking sector," the Press Secretary confirmed.



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