Bangladesh Bank reviews loan recovery, restructuring progress of Sammilito Islami Bank
The central bank says the bank is also using negotiated settlements, including the Exit Policy and ADR, while a forensic audit into past irregularities nears completion.
Bangladesh Bank today (27 August) held a meeting with its Bank Resolution Department (BRD) to review the progress of loan recovery, restructuring and overall operations of Sammilito Islami Bank PLC.
The meeting, held with the Bangladesh Bank governor at 11:00am this morning, reviewed progress in the bank's merger and reconstruction process, reconstitution of its board and management, human resource integration, branch consolidation, and IT and operational integration.
The central bank said these activities are being implemented under its initiative and supervision, while the BRD is regularly monitoring and following up on the progress.
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At the meeting, officials said the bank has already filed around 10,000 cases as part of efforts to recover defaulted loans and protect depositors' interests, while more cases are in the pipeline.
Alongside conventional legal measures, the bank has also adopted negotiated alternatives, including the Exit Policy and Alternative Dispute Resolution (ADR), to accelerate loan recovery.
A forensic audit aimed at identifying those responsible for irregularities, corruption, loan fraud and misuse of assets during the tenure of the previous ownership and management is now at the final stage, the central bank said.
Over the past six months, several measures have been taken regarding the bank.
Its board of directors has been reconstituted with greater representation of independent directors, while a chief executive officer was appointed with effect from 16 July 2026.
The bank has also finalised necessary adjustments to the ranks, responsibilities and organisational structure of around 16,000 officers and employees.
Work is underway to integrate the IT infrastructure of the five banks into a single framework, including their Core Banking System (CBS), SWIFT and RMA platforms.
A common interface has also been completed to allow depositors to withdraw money from any branch of the five banks.
In addition, merger, rationalisation and operational integration activities involving 780 branches and 1,500 business units are continuing, taking into account branch location, business potential, customer service and operating costs.
Bangladesh Bank said it is maintaining close oversight of Sammilito Islami Bank PLC. The BRD is regularly reviewing progress in the bank's restructuring, loan recovery, case disposal, human resource management, branch and business unit integration, and technological integration.
The central bank expects these coordinated initiatives to improve governance, operational efficiency, and financial capacity, accelerate loan recovery, reduce operating costs, and help channel the bank's stuck funds back into productive sectors.
Sammilito Islami Bank PLC began operations as Bangladesh's largest state-owned Shariah-based Islamic bank with a capital base of Tk35,000 crore.
Bangladesh Bank said ensuring transparency, accountability and good governance in the bank's asset and deposit management remains one of its key priorities.
