Sammilito Islami Bank depositors can withdraw additional funds from next week

Depositors of Sammilito Islami Bank will be able to withdraw money beyond the limits set under the Bangladesh Bank’s existing scheme in cases of urgent need, as the newly formed lender moves to restore normal banking operations.

Customers seeking to withdraw funds beyond the prescribed limit must submit written applications to their respective branches between September 1 and 7. Following verification, the bank will begin processing the additional withdrawals from next week.

The initiative is aimed at restoring depositors’ confidence and normalising transactions at the bank, which was formed by merging five troubled Islamic banks—EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.

The bank’s board and management are also expected to meet with the Bangladesh Bank governor to discuss loan recovery, liquidity management and a smooth process for returning depositors’ funds without creating further disruption.

Bangladesh Bank recently scrapped its earlier decision to apply a haircut to profits earned on deposits in 2024 and 2025. As a result, depositors will receive the full declared profit on their term deposits.

Under the revised arrangement, transactions in all types of savings accounts will gradually return to normal. Customers facing urgent financial needs may also opt to break their term deposits and withdraw the full principal amount. However, those opting for a full exit will receive no profit on the withdrawn deposit. The bank will bear the applicable excise duty already paid by the government.

Customers making partial withdrawals from term deposits will continue to receive the full profit benefit on the remaining balance.

The five banks had faced severe liquidity shortages amid allegations of irregularities and fraud. They were subsequently merged under government ownership to form Sammilito Islami Bank.

Under the earlier withdrawal scheme, depositors could initially withdraw Tk 200,000 from eligible accounts under the Deposit Insurance Trust Fund, followed by Tk 100,000 every three months. The latest arrangement will allow eligible customers to access funds beyond those limits with liquidity support from Bangladesh Bank.