The official journey of the new state-owned bank 'Combined Islami Bank Plc' has started after the merger of five Shariah-based banks which have been in trouble for a long time.
The final license of the bank was approved in the Bangladesh Bank Board of Directors meeting on Sunday (November 30). The central bank confirmed this information in a press release.
According to Bangladesh Bank, Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank have been brought under the Bank Resolution Ordinance 2025 as part of the reform program started from September 2024 to restore good governance, accountability and discipline in the banking sector. Later these banks were declared insolvent and administrators were appointed.
In the meeting of the Advisory Council on October 9, it was decided to establish a new state-owned bank by merging five distressed Islamic banks. Then on November 9, Bangladesh Bank issued a Letter of Intent (LOI). As per the terms of LOI, apart from registration with Registrar of Joint Stock Companies and Firms, government share of Tk 20 thousand crore has already been paid out of the paid up capital of Tk 35 thousand crore of the bank.
After receiving the final license, the former secretary of the government. Mohammad Ayub Miah has been appointed as the chairman of the newly formed bank.
Bangladesh Bank says it will be the country's largest state-owned Shariah-based bank in terms of capital. Reassuring the depositors, the central bank said that as per the Deposit Protection Ordinance 2025, deposits up to two lakh rupees are completely safe and will be paid soon after the merger. The scheme of how deposits above two lakh rupees will be repaid will also be revealed soon.
The central bank expressed hope that the new bank under close supervision and professional management will soon emerge as a modern, dynamic and competitive Shariah-based bank. The government's aim is to restore public confidence in the banking sector and make the sector stronger, sustainable and inclusive.
