Dhaka, Sep 08 (V7N)- Sammilit Islami Bank, formed through the merger of five troubled Islamic banks, has started refunding deposits to individual customers.
On the first day of the refund process on Monday, around Tk 250 crore was withdrawn against 6,000 applications. Customers were also welcomed at bank branches with flowers and sweets. No untoward incident was reported during the first day.
The bank is currently returning money to individual depositors who applied outside the previously announced phased repayment scheme. Applications for withdrawals were accepted from September 1 to 7.
Depositors holding current and savings accounts were allowed to apply for withdrawals. The facility was also extended to term deposits, although customers withdrawing their entire term-deposit balance at once will not receive profit on that amount.
According to bank sources, a total of 74,221 applications seeking Tk 3,925 crore were submitted during the application period.
On September 1, the first day of applications, 18,046 applications were submitted seeking Tk 1,329 crore. On the second day, 19,613 applications sought Tk 1,160 crore, while 21,386 applications sought Tk 923 crore on the third day. On the final day, 15,476 applications were submitted seeking Tk 657 crore.
Those who applied on September 1 were asked to collect their money on Monday. However, some applicants did not come to withdraw their deposits, with several saying they preferred to wait after learning that term deposits would not earn profit if withdrawn in full.
Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said many depositors might choose not to withdraw their money immediately after learning that funds could be returned when needed. He also noted that customers withdrawing their entire term deposits at once would not receive profit.
Meanwhile, Bangladesh Bank provided Tk 5,000 crore in special financing to Sammilit Islami Bank on Sunday to ensure that depositors do not face difficulties in withdrawing their money.
Regarding the possible impact of the special financing on inflation, Arif Hossain Khan said the impact could be very limited. He said depositors were unlikely to withdraw and spend all the money at once, meaning a significant portion would eventually return to the banking system.
Sammilit Islami Bank was formed by merging Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank after prolonged financial problems linked to irregularities and alleged corruption.
The bank's paid-up capital is estimated at Tk 35,000 crore, of which the government has provided Tk 20,000 crore. The remaining Tk 15,000 crore is planned to be provided to depositors in the form of shares.
In addition, up to Tk 20,000 crore is being returned to depositors through Tk 12,000 crore from the Deposit Insurance Fund. Bangladesh Bank has announced a phased scheme for returning deposits, while the current process allows individual depositors to seek refunds separately.
According to Bangladesh Bank data, the central bank had previously provided a combined Tk 47,840 crore in special loans to the five troubled banks at different times. The outstanding amount, including interest, has now risen to around Tk 52,000 crore.
Another Tk 5,000 crore has been provided to Sammilit Islami Bank to restore depositor confidence and support the repayment process.
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