Sammilito Bank files 10,000 cases to recover default loans

Sammilito Islami Bank PLC, formed by merging five troubled shariah-based lenders, has filed nearly 10,000 lawsuits to recover defaulted loans, according to a statement released yesterday.

Initiatives have also been taken under an exit policy and Alternative Dispute Resolution (ADR) to recover depositors’ funds, the Bangladesh Bank (BB) said in a statement after a meeting between the governor and the Bank Resolution Department (BRD).

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In addition, a comprehensive forensic audit targeting individuals responsible for widespread irregularities, corruption, loan fraud and asset misappropriation under the previous ownership and management is nearing completion, the central bank said.

The meeting reviewed the progress of loan recovery, restructuring and overall operations of Sammilito Islami Bank.

The latest disclosure comes two days after the BB said Sammilito Islami Bank would allow individual depositors to withdraw their principal amounts from certain deposit accounts as needed from September 1.

There will be no haircut on their profits, it added.

The authorities formed the bank last year by merging First Security Islami Bank, EXIM Bank, Social Islami Bank, Global Islami Bank and Union Bank under the Bank Resolution Ordinance 2025.

Sammilito Islami began operations as the country’s largest state-owned shariah-based commercial bank with a paid-up capital of Tk 35,000 crore, including Tk 20,000 crore from the state coffers and Tk 15,000 crore from depositors.

In its statement, the BB said the board of directors of Sammilito Islami had been restructured with priority given to independent directors.

The central bank has also taken steps to rationalise the ranks, responsibilities and organisational structures of around 16,000 officers and employees.

To enable depositors to withdraw their funds from any branch of the five banks, work on introducing a common interface was completed recently, it added.

The BB said the rationalisation and operational integration of 780 branches and 1,500 business units are underway.

The central bank added that its BRD would continue to conduct regular follow-up assessments and monitor progress.