Sammilit Islami Bank's 6,000 customers get refunds on first day

Sammilit Islami Bank, formed by merging five Sharia-based banks, is gradually returning to normal operations. As part of this, the process of refunding depositors' money has started from Monday (September 7). The bank has refunded a total of Tk 2.5 billion to about 6,000 customers on the first day.

In addition to refunding money, Sammilit Islami Bank has also launched online money transfer services from the same day. As a result, the bank's operations have regained some momentum after a long period of stagnation.

Refund of money to applicants

Sammilit Islami Bank said that applications were received from depositors from September 1 to 6 for refunds. Among the applicants, those who went to their respective branches to withdraw money on Monday have been paid according to the rules.

The bank's Managing Director (MD) Md. Abedur Rahman Sikder said that arrangements have been made to refund the money of all the customers who applied. However, not everyone came to the bank to withdraw money on the first day. Many customers have decided to keep their money in the bank for now. He also said that some have deposited the money back in the bank after withdrawing the money.

74,000 customer applications

Bangladesh Bank has allocated Tk 5,000 crore to Sammilit Islami Bank to return the money to depositors. About 74,000 depositors applied for the return of money within the stipulated time. A total of Tk 3,925 crore has been sought in these applications.

Arrangements have been made to supply money to bank branches as needed so that customers do not face financial difficulties while withdrawing money.

Crowd of customers at branches

Customers were seen coming to withdraw money from branches in different areas of the capital, including Gulshan, Mohakhali, Banani and Motijheel, since Monday morning. The bank authorities welcomed the customers and verified the applications and returned the money.

ABM Mukarram Mahmud, manager of the Uttara branch of the merged Union Bank, said that eight customers applied to withdraw money on the first day. Four of them withdrew the money. Other applicants have also been contacted. At the same time, customers who have profit deposits in their accounts can also withdraw it.

Five banks merge to form a new bank

Initiatives were taken to form a combined Islamic bank by merging First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and Exim Bank. Although the branches of the five banks are still operated separately, they are under the new bank. There are a total of 761 branches of these banks across the country.

In August 2024, an initiative was taken to merge the Sharia-based banks that were in crisis after the fall of the Awami League government. Later, the activities of the new bank were taken forward.

Major crisis due to allegations of loan irregularities

Before the merger, there were allegations of major loan irregularities in some of the five banks. Among them, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank were under the control of the S Alam Group, according to various reports. On the other hand, Nasa Group Chairman Nazrul Islam Majumder was involved with Exim Bank.

After the political change, various financial audits have revealed allegations of irregularities in the banks' loan disbursement and financial management. Due to these crises, it has also become difficult to return the money to depositors.

Attempts to return to normal banking activities

Currently, Sammilit Islami Bank is trying to return deposits as well as other banking services to normal. The process of returning customers' money is being taken forward with the support and supervision of Bangladesh Bank.

It is believed that the bank has made a major progress in its deposit return activities by returning Tk 2.5 billion to 6,000 customers on the first day.