Customers of state-owned Sammilito Islami Bank are facing fresh difficulties in withdrawing their deposited funds in full, with some reportedly being asked to give up claims to profit and other financial benefits before receiving their principal in a single payment.
According to bank sources, customers seeking to withdraw their entire principal are being asked to sign a two-page undertaking. The document reportedly states that once the principal is withdrawn, the account will be treated as having reached a “full and final settlement”.
Under the undertaking, the depositor, nominee, heirs and legal representatives would not be able to raise future complaints, claims or legal proceedings against the bank or any authority over profit or other financial benefits linked to the account. The depositor must also provide the signatures of two witnesses.
The requirement has caused frustration among customers, particularly those who need access to their savings for urgent expenses. Some have reportedly submitted withdrawal applications but returned without collecting the money after being confronted with the conditions.
Sammilito Islami Bank was formed through the merger of five Shariah-based banks—EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank. The banks had faced allegations of financial irregularities and severe liquidity pressures. The process of returning deposits to customers of the newly formed bank officially began on 7 September under a government initiative.
The scale of withdrawal requests has been substantial. According to figures from Sammilito Islami Bank, between 1 and 20 September, a total of 179,682 customers submitted applications to withdraw Tk6,975 crore. Of them, 90,098 customers had received Tk3,245 crore.
At the same time, the bank attracted Tk2,700 crore in fresh deposits. A further Tk378 crore was deposited through 32,074 newly opened accounts.
The latest dispute is closely linked to an earlier decision concerning a possible reduction in depositors’ profits. On 14 January, Bangladesh Bank issued a letter stating that profits for two years, based on balances held in 2024 and 2025, would be subject to a ‘haircut’. Following strong criticism, however, the central bank issued a notice on 25 August stating that there would be no haircut on deposits and that customers would be able to withdraw their principal from 1 September.
Despite that announcement, customers seeking to withdraw their principal in one payment now say they are being required to surrender claims to profit and future legal remedies. This has created confusion over how the central bank’s decision is being implemented at branch level.
Bangladesh Bank spokesperson Arif Hossain Khan said the bank was still facing a liquidity shortage because borrowers of the five merged institutions had failed to repay principal and profit on time. He said customers taking their money out immediately because of urgent needs would have to forgo profit, while other depositors would receive their deposits along with profit once the situation stabilised.
Customers have also complained about delays and a lack of cooperation at branch level. Some say they were told that money would be released within three days, in line with an announcement by the bank’s managing director, but that the stated timeframe was not being followed consistently.
There are also complaints that customers have been waiting 20 to 25 days for approval from the head office. Some branches have reportedly cited the absence of the circular cancelling the haircut as a reason for delaying payments. Customers have expressed their frustration over the situation on social media.
Meanwhile, Sammilito Islami Bank has begun reviewing profit rates for personal term deposits and various deposit schemes. A letter was sent on Monday to all divisional heads and branch managers regarding the issue, although the revised rates have yet to be finalised.
The same letter instructed branches to return funds to legitimate claimants of deceased customers after verifying the required documents. It also directed officials to unblock frozen accounts promptly so that they could resume transactions.
The developments leave the bank dealing with two immediate challenges: meeting substantial withdrawal demands while managing an ongoing liquidity shortage. For depositors, the key concern remains whether they can access their principal without having to relinquish claims that they believe may otherwise be due to them.