BB withdraws EXIM bank administrator, begins transition at merged banks

The Bangladesh Bank has withdrawn the administrator overseeing EXIM Bank, allowing Sammilito Islami Bank PLC's board and managing director to oversee its operations.

The central bank issued a letter today (30 July) withdrawing the administrator and his team following a decision taken at its board meeting a day earlier, a senior Bangladesh Bank official told The Business Standard.

With the administrator withdrawn, EXIM Bank's operations will now be overseen by Sammilito Islami Bank's board of directors and managing director.

Officials said the remaining four banks -- First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank -- are expected to follow by August.

The move follows a policy decision taken on 20 July to gradually bring the operations of the five merged banks under the unified management of Sammilito Islami Bank, which was formed during the interim government's tenure.

Following the merger, the boards of the five banks were dissolved, their managing directors were removed, and Bangladesh Bank appointed administrators to oversee their operations.

The central bank is withdrawing those administrators in phases. Before withdrawing an administrator, Sammilito Islami Bank's board reviews the respective bank's financial condition, operational readiness, and restructuring progress with the administrator.

It then recommends a transfer schedule to Bangladesh Bank. The central bank withdraws an administrator only after responsibility for the respective bank is formally transferred to Sammilito Islami Bank's board and managing director.

On 8 June, the government appointed Quazi Shairul Hassan as chairman of Sammilito Islami Bank and Abedur Rahman Sikder as its managing director.

Sammilito Islami Bank, created to consolidate the five merged lenders, began operations with an authorised capital of Tk35,000 crore. The government has so far injected Tk20,000 crore as capital support.