United Islami Bank begins operations
Former secretary Mohammad Ayub Miah met Bangladesh Bank Governor Ahsan H Mansur and took office as the chairman of the new bank this afternoon
The United Islami Bank PLC, formed through the merger of five Shariah-based banks, officially commenced operations today (2 December).
Former secretary Mohammad Ayub Miah met Bangladesh Bank Governor Ahsan H Mansur this afternoon and took office as the chairman of the new bank, which received final approval and a licence yesterday (1 December).
Talking to reporters afterwards, Ayub said that the establishment of a government-owned Islamic bank marks "good news for the nation".
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He added that a technical team is already working to ensure a strong institutional foundation.
"Our main goal will be regaining the trust of the depositors. The United Islami Bank will become a symbol of trust to the nation," Ayub said.
Ayub Mia noted that the discussion with the central bank governor focused on reviewing the bank's vision, mission, legal framework, and operational roadmap.
He said the process of establishing the bank as a fully operational entity – along with the legal merger of the five institutions – will now move forward.
Earlier on Sunday, a special board meeting chaired by Bangladesh Bank Governor Ahsan H Mansur decided to merge five troubled Islamic banks – First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank – into a single new entity. The central bank formally handed over the licence yesterday.
The bank has already started official activities from its head office at Sena Kalyan Bhaban in Motijheel. Bangladesh Bank announced that Governor Mansur will formally inaugurate the new institution at a press conference on Thursday.
United Islami Bank PLC has been established with a paid-up capital of Tk35,000 crore, of which the government will provide Tk20,000 crore, while the remaining Tk15,000 crore will be raised through depositors' shares. The authorised capital has been set at Tk40,000 crore.
Bangladesh Bank expects the newly merged institution to play a significant role in stabilising the Islamic banking sector.
The process of returning deposits of up to Tk200,000 is set to begin next week, while a roadmap is being prepared for reimbursing larger deposits.
