Depositors of 5 Islamic banks won't receive profit for 2024–2025: Governor
Banks have been instructed to complete the recalculation process as quickly as possible to facilitate the smooth implementation of the Resolution Scheme
Depositors of five troubled Islamic banks will not receive any profit on their deposits for the years 2024 and 2025, following a decision approved by Bangladesh Bank Governor Ahsan H Mansur.
Bangladesh Bank issued the directive to the concerned banks today (14 January) after the governor's approval.
Confirming the matter to The Business Standard, the governor said that depositors of these troubled banks would not be paid profit for the two years due to the institutions' poor financial condition.
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"These banks were merged because of their weak financial health. Under the current circumstances, this decision has been taken," the governor said.
The five banks affected are Social Islami Bank, First Security Islami Bank, EXIM Bank, Union Bank, and Global Islami Bank. Their assets, liabilities, and manpower are being taken over by the newly formed Sammilito Islami Bank PLC. Once the merger process is completed, the five banks will gradually be dissolved, according to the central bank.
In a letter sent by the Bank Resolution Department to the five banks yesterday, Bangladesh Bank said that, to ensure uniform implementation of the Resolution Scheme, all deposit account balances would be recalculated based on their position as of 28 December 2025.
The recalculation will assume no profit on all deposits from 1 January 2024 to 28 December 2025.
The letter further stated that any haircut on deposits would be applied in line with the approved decision, and the final deposit balances would be determined accordingly.
Banks have been instructed to complete the recalculation process as quickly as possible to facilitate the smooth implementation of the Resolution Scheme.
A senior Bangladesh Bank official said audits had found that the five banks did not generate any profit over the past two years, prompting the decision not to pay profit to depositors.
Last year, Bangladesh Bank finalised the Bank Resolution Scheme 2025 for the newly formed Sammilito Islami Bank PLC, created by merging the five crisis-hit Shariah-based banks. The scheme outlines specific steps and timelines for repaying depositors' funds as part of the resolution process.
