Sammilito Islami Bank depositors can withdraw up to Tk10 lakh for emergency needs
Bangladesh Bank plans to appoint an administrator to Sammilito Islami Bank by August.
Highlights:
- Withdrawal scheme expanded to cover emergency needs beyond medical expenses
- Depositors can withdraw up to Tk1 million for eligible purposes
- Long-term depositors can withdraw full deposits after two years
- Administrator expected to be appointed by August
Depositors of Sammilito Islami Bank will now be able to withdraw up to Tk10 lakh for emergency purposes, following a revision to Bangladesh Bank's withdrawal scheme for the merged Islamic lender.
The decision was approved at a meeting of the Bangladesh Bank board today (29 July), chaired by Governor Mostakur Rahman.
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Previously, the scheme allowed withdrawals only for a depositor's own medical treatment.
Under the revised rules, depositors may also access funds for the medical treatment of immediate family members - including parents, children, siblings and spouses - as well as for other emergency needs.
The central bank has also decided that depositors with fixed deposits of more than one year will be able to withdraw their full savings after completing two years.
In addition, Bangladesh Bank is expected to remove the administrator from Sammilito Islami Bank by August.
According to officials familiar with the meeting, the revised scheme was introduced after the central bank received widespread feedback that many depositors needed access to their savings for urgent expenses beyond medical treatment.
"A large number of depositors needed money for emergency purposes other than medical treatment, but the previous scheme did not allow such withdrawals. The revised scheme addresses that issue," a Bangladesh Bank official told The Business Standard.
Sammilito Islami Bank was established last year after the interim government merged five Shariah-based banks - EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank - which had been facing severe financial distress.
According to the central Bank, the banks had disbursed loans worth thousands of crores of taka without adequate collateral under their previous management, triggering a severe liquidity crisis and making it difficult to repay depositors.
The merged bank has a paid-up capital of Tk35,000 crore, of which the government has contributed Tk20,000 crore. The remaining Tk15,000 crore will be converted into shares for depositors.
Separately, the Deposit Insurance Trust Fund (DITF) has been providing up to Tk2 lakh to eligible depositors.
Bangladesh Bank said 8.22 million depositors have so far received Tk3,887 crore under the programme, including around 350,000 customers of First Security Islami Bank, who received approximately Tk1,600 crore.
Central bank data show that the five merged banks had outstanding loans of Tk1.95 lakh crore at the end of December.
Against those loans, collateral was valued at only Tk47,900 crore, or 24.56% of the total loan portfolio. Their combined non-performing loans currently stand at Tk1.705 lakh crore, equivalent to 87.43% of outstanding loans.
