Customers of state-owned Sammilito Islami Bank are facing difficulties in withdrawing their deposited principal in a single payment, with some reportedly being required to surrender claims to profit and other financial benefits before receiving their money.
According to bank sources, customers seeking to withdraw their entire principal are being asked to sign a two-page document described as an ‘application-cum-undertaking’. The document states that once the principal is withdrawn, the account will be considered to have reached a “full and final settlement”.
Under the undertaking, the depositor, nominee, heirs and legal representatives would not be able to submit future complaints, claims or applications, or pursue legal action against the bank or any authority over profit or other financial benefits associated with the account. The depositor is also required to provide the signatures of two witnesses.
The condition has generated frustration among customers who need access to their savings, particularly those seeking to withdraw money for urgent financial requirements. Some customers have reportedly submitted applications but left without collecting the funds after being presented with the undertaking.
Sammilito Islami Bank was formed by merging five Shariah-based banks—EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank. The five institutions had been facing serious financial irregularities and liquidity pressures. The process of returning deposits to customers of the newly formed bank officially began on 7 September under a government initiative.
The scale of withdrawal requests has been considerable. According to figures provided by Sammilito Islami Bank, between 1 and 20 September, 179,682 customers submitted applications to withdraw a combined Tk6,975 crore. Of these, 90,098 customers had received Tk3,245 crore.
At the same time, the bank recorded fresh deposits of Tk2,700 crore. A further Tk378 crore was deposited through 32,074 newly opened accounts.
The current dispute is linked to an earlier decision concerning the treatment of deposit profits. On 14 January, Bangladesh Bank issued a letter stating that profits for two years, based on balances held in 2024 and 2025, would be subject to a ‘haircut’. Following strong criticism, the central bank issued a notice on 25 August saying that deposits would not be subject to a haircut and that customers would be able to withdraw their principal from 1 September.
Customers, however, say the practical arrangements at the bank have created a different situation. Those seeking to withdraw their full principal in one payment are reportedly being asked to relinquish claims to all profit and future legal remedies. As a result, some depositors are choosing not to collect the money despite having submitted withdrawal applications.
Bangladesh Bank spokesperson Arif Hossain Khan said the merged bank was still experiencing a liquidity shortage because borrowers of the five institutions had failed to repay principal and profit on time. He said customers withdrawing money immediately because of urgent needs would have to forgo profit, while other depositors would receive their deposits along with profit once the bank’s financial situation improved.
Customers have also raised complaints about delays at branch level. Some say that despite applying for funds for urgent needs, payments are not being released within the three-day timeframe announced by the bank’s managing director.
There are also allegations that customers have had to wait 20 to 25 days for approval from the head office. Some branches have reportedly cited the absence of the circular formally communicating the cancellation of the haircut as a reason for delaying payments. Customers have expressed their frustration over the situation on social media.
Meanwhile, Sammilito Islami Bank has taken steps to review profit rates for personal term deposits and various deposit schemes. A letter was sent to all divisional heads and branch managers on Monday regarding the proposed revision, although the new rates have not yet been finalised.
The letter also instructed branches to return funds to legitimate claimants of deceased customers after verifying the required documents. It directed officials to unblock frozen accounts promptly and restore them to a condition in which transactions could be carried out.
The bank is therefore dealing with substantial withdrawal demands while continuing to face liquidity constraints. For depositors, the immediate concern is not only when they will receive their principal, but also what will happen to their claims to profit and other financial benefits when they accept a full and final settlement.
