Social Islami Bank sponsors, stakeholders oppose merger, demand return to founders
Md Rezaul Haque alleged that the bank’s downfall began in 2017 when it was forcibly taken over by the S Alam Group.
Sponsors and general shareholders of Social Islami Bank PLC (SIBL), including its founding members, have demanded that the bank not be merged with any other financial institution and instead be returned to its original owners.
They voiced the demand during a press conference at the National Press Club this morning (30 March). Key founding directors, including Md Rezaul Haque, along with other sponsor directors and shareholders, were present.
In a written statement, Rezaul highlighted that since its establishment in 1995, SIBL has played a vital role in the country's banking sector and maintained a consistent track record of providing dividends to its shareholders.
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He noted that the bank gained further prominence after being listed on the stock market in 2009.
However, he alleged that the bank's downfall began in 2017 when it was forcibly taken over by the S Alam Group with the assistance of a government intelligence agency under the directive of the then autocratic regime.
"The forced change in management led to a severe deterioration of the bank's financial health and a significant erosion of customer trust," Rezaul stated, adding that unilateral decisions are currently being imposed on the bank without considering its long-term viability.
Speakers expressed concern that merging SIBL with another banking entity can harm customers, depositors, and investors.
They also stated that the bank can recover if a new board is formed with the participation of its original founding directors and shareholders, along with necessary liquidity support.
Stakeholders said SIBL can recover if a new board of actual entrepreneurs and shareholders is formed with central bank liquidity support.
They urged the Bangladesh Bank and relevant authorities to step back from the merger decision and instead seek a logical solution through inclusive dialogue.
Earlier this month, Bangladesh Bank Governor Md Mostaqur Rahman said the newly formed Sammilito Islami Bank, created by merging five troubled Islamic banks, will continue its operations without disruption.
The five banks are First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank and Union Bank.
