DHAKA — Bangladesh Bank on Wednesday morning dissolved the boards of directors of five private banks that are to be merged, and the central bank’s appointed administrators will take charge the same day.
The banks are First Security Islami Bank, Global Islami Bank, Union Bank, Exim Bank and Social Islami Bank, Bangladesh Bank sources said.
The central bank wrote to the banks Wednesday morning saying they will operate under the Bank Resolution Ordinance from now on. Bangladesh Bank has set out which administrator will run each bank and what their duties will be. After taking charge, the administrators will in a first phase repay each depositor up to 200,000 taka from the deposit protection fund.
Bangladesh Bank Governor Ahsan H. Mansur has called a news conference to discuss the matter. The interim government has decided to merge the five troubled banks into a single bank.
According to Bangladesh Bank, the combined Islamic bank formed by the merger will have a capital base of 35,000 crore taka. Of that, the government will provide 20,000 crore taka, and depositors will receive shares worth 15,000 crore taka.
The five banks currently hold deposits of 142,000 crore taka from 7.5 million depositors, against loans of 193,000 crore taka. Of those loans, 147,000 crore taka, or 76 percent, are now classified as non-performing.
The banks together operate 760 branches, 698 sub-branches, 511 agent banking outlets and 975 ATMs across the country. Union Bank has the highest share of non-performing loans, at 98 percent. First Security Islami follows at 97 percent, Global Islami at 95 percent, Social Islami at 62.30 percent and Exim Bank at 48.20 percent.
According to Bangladesh Bank sources, Bangladesh Bank executive director Shawkatul Alam will serve as administrator of Exim Bank. Executive director Salahuddin will take charge at Social Islami, and another executive director, Muhammad Badiuzzaman Didar, will run First Security Islami Bank. Director Md. Moksuduzzaman has been assigned to Global Islami Bank and another director, Mohammad Abul Hasem, to Union Bank.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report