BB seeks exit plans for five merging banks’ administrators

The Bangladesh Bank (BB) has asked administrators of five merged banks to submit their exit plans as the newly appointed chairman and managing director of Sammilito Islami Bank assumed office.

Five troubled banks -- Social Islami Bank, Global Islami Bank, Union Bank, First Security Islami Bank, and EXIM Bank -- were merged into the newly formed Sammilito Islami Bank under the Bank Resolution Act, 2026.

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The central bank sought the exit plans during two separate meetings yesterday at its headquarters -- one with the administrators, and another with Sammilito Islami Bank’s new chairman and managing director.

Md Kabir Ahmed, deputy governor of BB and head of the Bank Resolution Department, presided over both meetings.

In their exit plans, the administrators will have to submit progress reports on their respective banks, including financial indicators, central bank officials said on condition of anonymity. BB had appointed temporary administrators to each of the five banks in November last year.

Since the new managing director has already joined while the five banks remain under administrators, the dual leadership could create administrative complications and operational inefficiencies, industry insiders said.

However, according to sources familiar with the meeting, authorities are considering whether the administrators could continue to be involved with the banks in some other capacity even if their current role ends.

The new board of directors of the Sammilito Islami Bank formally assumed office last Thursday, when the new managing director also took charge; the board held its first meeting the same day.

Earlier last month, the government appointed Quazi Shairul Hassan as chairman of the bank’s board of directors and Abedur Rahman Sikder as managing director and chief executive officer. The new chairman and managing director met BB Governor Md Mostaqur Rahman after Sunday’s meeting.