Sammilito Islami Bank files 10,000 cases so far to recover defaulted loans
The bank is pursuing legal action alongside negotiated settlements to recover funds stuck with borrowers and protect depositors’ interests.
Sammilito Islami Bank has so far filed around 10,000 cases to recover defaulted loans as part of an intensified legal drive to retrieve stuck funds and protect depositors' interests.
More cases are also being prepared, according to Bangladesh Bank officials at a meeting held today (27 August) to review the bank's loan recovery and restructuring progress, Bangladesh Bank assistant spokesperson Shahriar Siddiqui confirmed the matter.
The meeting, held with Bangladesh Bank Governor Md Mostaqur Rahman and officials of the Bank Resolution Department, reviewed progress on the merger and restructuring of the five banks, reconstitution of their boards and management, human resource integration, branch consolidation, and integration of information technology and other operations.
Alongside conventional legal action, the bank is using negotiated mechanisms, including the Exit Policy and Alternative Dispute Resolution, to expedite loan recovery and resolve disputes, officials said.
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A forensic audit to identify individuals involved in irregularities, corruption, loan fraud and misuse of assets during the tenure of the previous owners and management is also nearing completion.
The authorities formed Sammilito Islami Bank in November 2025 by merging five troubled Islamic banks – First Security Islami Bank, Exim Bank, Social Islami Bank, Global Islami Bank and Union Bank.
The Bangladesh Bank said several major steps have been taken over the past six months to restructure Sammilito Islami Bank.
The bank's board has been reconstituted with greater representation of independent directors, while a chief executive officer was appointed on 16 July.
Necessary adjustments to the ranks, responsibilities and organisational structure of around 16,000 officers and employees have also been finalised, according to the central bank.
Work is underway to integrate the IT infrastructure of the five banks under a single framework, including the Core Banking System, SWIFT and RMA.
A common interface has also been completed, allowing depositors to withdraw money from any branch of the five banks.
According to the Bangladesh Bank, the merger, rationalisation and operational integration of 780 branches and 1,500 business units are ongoing, taking into account branch locations, business potential, customer service and operating costs.
The Bank Resolution Department is regularly reviewing progress on Sammilito Islami Bank's restructuring, loan recovery, case disposal, human resource management, branch and business unit integration, and technological integration, the central bank said.
Bangladesh Bank expects the measures to strengthen governance and operational efficiency, accelerate loan recovery, reduce operating costs and help channel recovered funds back into productive sectors.
