Merging banks’ depositors will not get any profit for 2024, 2025

Depositors at five merging banks will not receive any profit for 2024 and 2025 as Bangladesh Bank (BB) has asked the banks to recalculate their deposit balances.

The five—First Security Islami, Social Islami, Union, Global Islami, and EXIM—are in the process of merging into a new state-run financial institution, Sammilito Islami Bank PLC.

The central bank sent a letter to each of the five stating that deposit balances will be recalculated based on their position as of December 28, 2025, while no profit will be considered on deposits for the period from January 1, 2024, to December 28, 2025.

It was previously decided to pay profit on deposits at the bank rate, which currently stands at 4 percent.

The letter said the recalculation would be carried out to ensure uniform implementation of the resolution scheme, with the approval of the Bangladesh Bank governor.

The banking regulator also said that a haircut on deposits would be applied in accordance with the approved decision, and the final balances of depositors would be determined after completion of the recalculation.

The term “haircut on deposits” refers to a reduction in the value of a bank deposit in situations of a severe banking crisis or debt restructuring.

Banks have been asked to take the necessary steps to complete the recalculation process at the earliest to facilitate the smooth implementation of the resolution scheme.

On December 30 last year, BB introduced a comprehensive Bank Resolution Scheme, outlining priority access to deposits at the five merging shariah-based banks and the mechanism for refunding remaining funds over time.

Last month, BB granted the final licence to Sammilito Islami Bank, which will start its official operation soon.