Marking a major consolidation in the financial sector, Sammilito Islami Bank PLC officially commenced operations on Tuesday following the merger of five Shariah-based banks, reports BSS.
Former secretary Mohammad Ayub Miah has taken office as the chairman of the new bank following a meeting with Bangladesh Bank Governor Dr Ahsan H Mansur in the afternoon.
Talking to reporters, Ayub said that establishment of a government-owned Islamic bank marked good news for the nation.
He added that a technical team was already working to ensure a strong institutional foundation.
"Our main goal will be regaining the trust of the depositors. The United Islami Bank will become a symbol of trust to the nation," Ayub said.
Ayub Mia noted that the discussion with the central bank governor focused on reviewing the bank's vision, mission, legal framework, and operational roadmap.
He said the process of establishing the bank as a fully operational entity - along with the legal merger of the five institutions - would now move forward.
Earlier on Sunday, a special board meeting chaired by Bangladesh Bank Governor Ahsan H Mansur decided to merge the five troubled Islamic banks - First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank - into the single new entity. The central bank formally handed over the licence on the day.
The bank has already started official activities from its head office at Sena Kalyan Bhaban in Motijheel. Bangladesh Bank announced that Governor Mansur would formally inaugurate the new institution at a press conference on Thursday.
Sammilito Islami Bank PLC has been established with a paid-up capital of Tk 350 billion (35,000 crore), of which the government will provide Tk 200 billion (20,000 crore), while the remaining Tk 150 billion (15,000 crore) will be raised through depositors' shares. The authorised capital has been set at Tk 400 billion (40,000 crore).
Bangladesh Bank expects the newly merged institution will play a significant role in stabilising the Islamic banking sector.
The process of returning deposits of up to Tk 200,000 is set to begin next week, while a roadmap is being prepared for reimbursing larger deposits.
