The interim government has approved the merger of five financially troubled Shariah-based commercial banks into a new state-owned lender named Sammilito Islami Bank Limited.

The decision was made at a meeting of the advisory council chaired by Chief Adviser Professor Muhammad Yunus. Chief Adviser’s Press Secretary Shafiqul Alam announced the development at a briefing held at the Foreign Service Academy.

The five banks to be merged are First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and Exim Bank — all of which are listed on the stock exchange. A sixth lender, ICB Islamic Bank, was initially part of the plan but was later excluded due to an ownership dispute pending before the High Court.

Alam said the new entity would absorb all assets and liabilities of the five merging institutions. He added that no employee would lose their job and all depositors’ funds would remain secure.

The Bangladesh Bank has set the authorized capital of Sammilito Islami Bank at Tk 400 billion, with a paid-up capital target of Tk 350 billion. According to Alam, Tk 150 billion of this will come from converting institutional deposits into equity through a bail-in process. In comparison, the remaining Tk 200 billion will be provided by the government — half in cash and half through the issuance of Sukuk, or Shariah-compliant bonds.

Initially, the Finance Division will hold full ownership of the bank on behalf of the state, with plans to bring in a strategic investor within three years and complete full privatization within five.

Central bank officials involved in the process said depositors who wish to close their accounts will be allowed to withdraw up to Tk 2 lakh.

Alam reiterated that the merger aims to safeguard depositors’ interests, preserve jobs, and restore stability to the Islamic banking industry. “No employee will lose their job, and no depositor will lose their savings,” he said.