Merged bank depositors can now withdraw up to Tk 10 lakh: BB

Depositors of five merged Shariah-based (Sammilito Islami Bank) banks can now withdraw up to 10 lakh taka from their accounts not only for personal medical treatment but also for other urgent needs, including medical expenses for immediate family members.

The decision was taken at a meeting of the Bangladesh Bank Board of Directors, chaired by its Governor Md Mostaqur Rahman, on Wednesday.

Under the revised facility, the withdrawal option has been extended to cover medical treatment for parents, children, siblings, and spouses, as well as other pressing emergency requirements.

Previously, account holders were restricted to withdrawing funds solely for their own medical treatment.

The facility applies to depositors of First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and Exim Bank.

Sources familiar with the meeting said the amendment was made to the previously announced depositor reimbursement scheme to address unforeseen financial needs.

A central bank official explained that many customers face sudden financial burdens beyond personal healthcare, such as medical costs for family members or other urgent family expenses. The scheme was updated to incorporate these crucial needs, which were missing in the original framework.

Last year, the then interim government merged the five troubled Shariah-compliant lenders to establish Sammilito Islami Bank. The newly formed entity was set up with an authorised paid-up capital of 35,000 crore taka, of which the government provided 20,000 crore taka, while the remaining 15,000 crore taka is being allocated as shares to depositors against their holdings.

Additionally, a reimbursement programme utilising 12,000 crore taka allocated from the Deposit Insurance Fund is currently underway to pay out individual deposits of up to two lakh taka. According to Bangladesh Bank data, a total of 3,887 crore taka has been paid out to 822,000 depositors so far. Among them, 350,000 customers of First Security Islami Bank alone have received 1,600 crore taka.

Central bank figures show that as of December last year, total outstanding loans across the five banks stood at 1,95,000 crore taka against collateral worth 47,900 crore taka – covering just 24.56 percent of total loans. Non-performing loans (NPLs) across these institutions have reached 1,70,500 crore taka, accounting for 87.43 percent of their total loan portfolio.