In a major breakthrough for Bangladesh’s banking sector, Sommilito Islamic Bank has officially begun returning funds to its depositors, dispersing roughly 250 crore taka (around £160 million) to nearly 6,000 customers on its first day of operations. The payouts on Monday, 7th September, were complemented by the immediate restoration of online fund transfer services, offering a double boost to an institution attempting to step out from the shadow of long-standing financial distress.
The newly formed entity brings five troubled Islamic institutions—First Security Islamic Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank—under a single state-administered structure. While operating as a unified bank, its 761 branches across the country maintain their original localized network systems for the time being.
Between 1st and 6th September, the bank invited withdrawal applications, receiving requests from 74,000 depositors seeking a combined total of 3,925 crore taka. To ensure that branches experienced no cash shortages and that every valid claim was honoured on demand, Bangladesh Bank stepped in with a dedicated 5,000 crore taka liquidity facility.
Managing Director Md Abedur Rahman Sikder confirmed that complete liquidity arrangements have been made for all processed applicants. However, turnout on the opening day was lower than anticipated. Upon being contacted by branch officials, several depositors expressed a preference to leave their savings intact, while others withdrew their funds only to re-deposit them shortly afterwards—a subtle sign that public confidence may be returning.
Visits to key branches across Dhaka’s commercial districts, including Gulshan, Mohakhali, Banani, and Motijheel, revealed steady queues of depositors who were greeted with flowers by bank officers. At the Uttara branch of the former Union Bank, Branch Manager A B M Mokarram Mahmud noted that four out of eight scheduled applicants collected their cash on day one, while others were contacted to schedule flexible collection times. Customers were also permitted to withdraw accumulated profit yields on their accounts.
The structural merger follows years of systemic loan fraud under previous regimes. Four of the merged lenders were previously controlled by the Chittagong-based business magnate Saiful Alam (S. Alam), while EXIM Bank was led by Naza Group Chairman Nazrul Islam Mazumder. Audits commissioned following the political shift in August 2024 uncovered that roughly 80 per cent of the total loan portfolio across all five banks had been misappropriated through corrupt lending practices, leaving the institutions severely illiquid.
Following the audit findings, authorities stripped the former owners of their shares, placed overall control in the hands of the government, and initiated the consolidation plan. The current BNP administration, which assumed power in February, has continued to steer the integration process. While the disbursement of 250 crore taka marks a promising start, the bank faces a lengthy road ahead as it works to settle the remaining deposit requests and permanently rebuild trust across the financial sector.