News Flash
DHAKA, Oct 9, 2025 (BSS) - The Advisory Council today approved a proposal to establish a new single Islami Bank by merging five troubled private-sector Shariah-based Islami Banks.
The approval was given at the Council's meeting at the Chief Adviser's Office (CAO) in the city with Chief Adviser Professor Muhammad Yunus in the chair.
"A significant decision was made at today's meeting. To ensure financial sector stability and strengthen Islamic banking, a proposal has been approved to merge five troubled banks into one new Shariah-based bank," Chief Adviser's Press Secretary Shafiqul Alam said at a briefing at the Foreign Service Academy here following the meeting.
The five banks to be merged are: First Security Islami Bank PLC, Global Islami Bank PLC, Union Bank PLC, EXIM Bank PLC, and Social Islami Bank PLC.
The proposed names for the new bank are "Inter United Islami Bank" or "Combined Islami Bank Limited PLC, Shafiqul said, adding that through this process, the new bank will assume all liabilities and assets of the merged institutions and will operate commercially and professionally.
According to the summery presented at the meeting, the proposed new bank will have an authorized capital of Taka 40,000 crore, with a paid-up capital of Taka 35,000 crore.
Of the total capital, the government will contribute Taka 20,000 crore while Taka 10,000 will be given in cash and the remaining Taka 10,000 will be collected through the issuance of Sukuk bonds.
Additionally, Taka 15,000 crore from institutional depositors will be converted into equity shares through a bail-in process, under which a portion of banks' clients' and other creditors' debts will be transformed into shares and later repaid according to a resolution plan.
Shafiqul Alam said as a legal case over share ownership of ICB Islami Bank PLC is pending in the High Court, it has been excluded from this merger process. The newly formed bank will be state-owned one and operate as a regular commercial bank, he added.
Initially, the Finance Division will own the transferee bank on behalf of the government, he said, adding, however, there is plan to gradually transfer ownership to the private sector.
According to the plan, a strategic partner will be identified within three years and the bank will be transferred to the private sector within five years.
The Press Secretary confirmed, "No employee will lose their job, and no depositor will lose their savings through this merger. This move will enhance financial stability, transparency, and integrity in the county's banking sector."
