Social Islami Bank stakeholders oppose merger with troubled banks
The stakeholders argued that if the bank is managed under the leadership of its original founders and shareholders, it could recover quickly with the cooperation of the Bangladesh Bank
Shareholders and officials including the director of Social Islami Bank PLC have demanded the bank not be merged with struggling Islamic banks, warning that such a step could harm customers and investors.
They raised the demand at a press conference held at the National Press Club in Dhaka today (8 September).
At the press conference, the bank's former chairman, Dr Major (Retd.) M Rezaul Haque, said, "This bank was once occupied at gunpoint. Now there is an initiative to take it into the public sector again. What is our crime? Under no circumstances can our bank be taken away. We have filed a writ petition in court, and that must be resolved first. It cannot be handed over to others."
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The bank's founding chairman Sultan Mahmud Chowdhury, said, "We are businessmen. If businessmen cannot run a bank, how will others manage it? We will run this bank ourselves. This is our asset. Can the government just take away someone's house or property?"
Former director Asaduzzaman said, "We built this bank with great effort. We brought money from abroad to establish it. Why should it be nationalised now?"
Md Jahangir, former director of Social Islami Bank, said, "The money required to run Social Islami Bank must be provided to Bangladesh Bank. We will return it later through our business."
Speakers said Social Islami Bank has long maintained stability in the banking sector. The bank was listed on the stock market in 2000 and has consistently paid dividends.
However, the stakeholders claimed that Social Islami Bank fell into financial difficulties following management changes and various decisions taken after 2017.
They further alleged that the new board of directors formed by the Bangladesh Bank after the 5 August government change lacks adequate representation from the original founders and shareholders.
According to them, this has led to declining customer confidence and increase in deposit withdrawals.
The founders argued that if the bank is managed under the leadership of its original founders and shareholders, it could recover quickly with the cooperation of the Bangladesh Bank.
They also pledged to prioritise investment in the microfinance, SME and micro-enterprise sectors.
