Good news for customers of five banks

Bangladesh Bank has delivered a major reassurance to millions of depositors of five merged banks, confirming that the transfer of their accounts to the newly formed Combined Islami Bank PLC is in its final stages. Once the process is completed, customers will be able to use their existing cheque books to withdraw funds seamlessly, according to Bangladesh Bank spokesperson Arif Hossain Khan.

Several banks in the country had been grappling with severe liquidity crises for years, triggered by irregularities, weak management, and rising non-performing loans. In response, Bangladesh Bank approved the merger of the five most troubled Islamic banks into a single state-backed entity, Combined Islami Bank PLC. The five banks are:

EXIM Bank

Social Islami Bank

First Security Islami Bank

Global Islami Bank

Union Bank

Spokesperson Arif Hossain Khan stated that the transfer of deposits could be completed by next week. Once finalised, all customer deposits from these five banks will automatically move into the accounts of Combined Islami Bank. Customers can initially withdraw up to BDT 200,000 using their old cheque books. Deposits exceeding this limit will remain fully secure and continue to accrue profit at conventional rates.

He added that, being state-owned, the new bank is expected to gradually restore public confidence, reducing the rush to withdraw funds. Initially, customers will be restricted to withdrawing a maximum of BDT 200,000 at a time. However, withdrawal limits will be increased gradually. Customers with balances under BDT 200,000 may withdraw their full amount at once. For those with higher balances, withdrawals can be made in BDT 100,000 increments every three months, for up to two years. Depositors over 60 or suffering from serious illnesses are exempt from these restrictions and may withdraw any amount as needed.

The Combined Islami Bank headquarters has been established at Senakalyan Bhaban in Dhaka, with a paid-up capital of BDT 35,000 crore — comprising BDT 20,000 crore from the government and BDT 15,000 crore from depositors’ shares. The authorised capital is set at BDT 40,000 crore.

Key Data of Merged Banks

Bangladesh Bank expects that this consolidation will restore stability to the banking sector and rebuild depositor confidence, providing much-needed relief to millions of affected customers.