After weeks of uncertainty surrounding the future of Sammilito Islami Bank, the government has begun interviewing candidates for the post of managing director, signalling renewed movement in the operations of the newly merged Islamic bank.
The development comes amid growing debate over amendments to the Bank Resolution Act 2026 that could allow former shareholders of troubled banks to regain conditional control, raising concerns among regulators and international lenders.
The newly formed bank was created last year through the merger of five severely liquidity-hit Shariah-based commercial banks - Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank and EXIM Bank.
Uncertainty over the functioning of the country's largest bank in terms of paid-up capital emerged after the latest amendment to the Bank Resolution Act 2026, enacted by the newly elected government, which allows former shareholders to regain conditional control over banks.
The concerns intensified after former shareholders of Social Islami Bank Ltd formally appealed to regain conditional control of the troubled bank under the amended law.
Seeking anonymity, a Bangladesh Bank official said the regulator has started interviewing potential candidates for the post of managing director of Sammilito Islami Bank following instructions from the relevant ministry.
"We interviewed 10 candidates in two days (Thursday and Sunday)," he said.
When asked how many people would be interviewed, the central banker said the regulator did not have the complete list and that the Ministry of Finance, which owns the bank, could provide details.
Section 18(Ka) of the Bank Resolution Act 2026, passed by parliament on April 11, triggered widespread criticism from various quarters amid fears that representatives of groups accused of looting public money from the banks could regain ownership through the amended law.
The revised act allows former shareholders to initially pay only 7.5 per cent of the government-injected funds for the takeover. The remaining 92.5 per cent would have to be repaid over the following two years with 10 per cent simple interest.
Before the merger, the central bank on November 5 last year declared the net asset value (NAV) of shares of the five banks to be zero, citing deeply negative capital positions, and officially classified the institutions as non-viable.
Although all five banks remain listed on the stock market, trading in their shares was suspended by the Bangladesh Securities and Exchange Commission (BSEC).
Under the merger initiative, the government injected Tk 200 billion into the newly formed bank, while another Tk 150 billion was expected to come from the deposit insurance fund, creating a paid-up capital base of Tk 350 billion.
Of the government funds, Tk 100 billion was invested in Sukuk bonds, while the remaining Tk 100 billion in cash remains largely intact in Sammilito Islami Bank's current account with the regulator.
Finance Ministry officials said the immediate past interim government led by Muhammad Yunus had promulgated the Bank Resolution Ordinance 2025 under recommendations from development partners such as the International Monetary Fund (IMF) and the World Bank as part of financial-sector reforms.
However, officials said the new government's move to return troubled banks to former owners, who allegedly looted billions from the institutions, has caused concern among the IMF and the World Bank.
According to officials, one of the reasons behind the IMF's delay in releasing two tranches worth US$1.3 billion under its US$5.5-billion credit package is the government's steps towards restoring ownership to former shareholders.
Meanwhile, some renewed activity in the merger process has become visible after more than two months of stalemate.
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