BB includes 'United Islami Bank' in scheduled banks list
The move follows the central bank’s final approval yesterday to merge five underperforming Islamic banks into the new ‘United Islami Bank’.
The Bangladesh Bank has officially included the newly formed 'United Islami Bank' in its list of scheduled banks, effective today (1 December).
A notification issued by the central bank this evening confirmed the inclusion.
The move follows the central bank's final approval yesterday to merge five underperforming Islamic banks – First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank – into the new 'United Islami Bank'.
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According to central bank officials, with the final nod, the merged bank can now formally start operations. The Bangladesh Bank has announced that detailed guidelines, covering depositor payments, profit rates, salary structure and other operational issues, will be issued soon.
In a statement earlier today, the central bank assured depositors that none of them will lose their money, and all deposits will remain fully protected.
Ordinary depositors will be allowed to withdraw up to Tk2 lakh, with the highest priority being given to small depositors during the initial settlement phase. A plan for deposits exceeding Tk2 lakh will be announced shortly.
On 9 November, Bangladesh Bank issued a Letter of Intent approving the creation of United Islami Bank PLC. The new government-owned bank will have a paid-up capital of Tk35,000 crore, of which Tk20,000 crore has already been contributed by the government.
To ensure investment income for the new bank, the new bank is expected to invest Tk10,000 crore in the Shariah-based sukuk bond. This is expected to generate Tk800-900 crore in income for the bank.
