Sammilito Islami Bank readies Tk5,000cr as withdrawal requests hits Tk4,000cr in 4 days

Sammilito Islamic Bank has received nearly Tk5,000 crore from Bangladesh Bank to repay deposits, while customers have sought to withdraw Tk3,925 crore over the past four working days. A senior Bangladesh Bank official confirmed the figure to The Business Standard.

Since 1 September, around 74,221 customers have applied to withdraw Tk3,925 crore. Applications stood at 18,046 worth Tk1,329 crore on the first day, 19,613 worth Tk1,016 crore on the second, 21,086 worth Tk923 crore on the third and 15,476 worth Tk657 crore on the fourth.

Md Abedur Rahman Sikder, managing director of Sammilito Islamic Bank, said, "Figures are much lower than our expectations, which shows customer trust and confidence in us".

He said the bank had adequate preparations at branches of its five constituent banks and applications had declined gradually. The bank has nearly Tk10,000 crore in its current account with Bangladesh Bank, of which Tk5,000 crore was transferred today (6 September) to the five banks' accounts.

"The government owns this bank. Customers will transact with this bank with the same confidence they have in other state-owned banks," the official said.

Customers withdrawing before maturity will receive only the principal, while those keeping deposits until maturity will receive profits as agreed. They can withdraw cash or transfer funds to other banks through RTGS.

The official said adequate funds had been supplied to branches and there was no reason for depositors to be concerned.

Withdrawals begin tomorrow

Individual depositors can withdraw principal from Al-Wadiah current, Mudaraba savings, MTDR, DPS and other accounts. The bank accepted applications until today to complete cash and branch preparations and will begin payments tomorrow (7 September). 

Customers keeping accounts open will continue receiving profits at agreed rates; once operations fully resume, deposits and withdrawals, including profits, will be allowed without limits. The Bangladesh Bank's Bank Resolution Department issued the directive on 31 August.

Formed under the interim government after Exim, Social Islami, First Security Islami, Global Islami and Union Bank failed to return deposits amid irregularities and fraud allegations, Sammilito Islamic Bank has 7.6 million depositors with Tk1.42 lakh crore in deposits. 

Its loans total Tk1.92 lakh crore, 86% of which are in default, while capital shortfall exceeds Tk1.5 lakh crore. 

The state-owned bank began operations last November with Tk40,000 crore authorised and Tk35,000 crore paid-up capital, including Tk20,000 crore from the government and Tk15,000 crore to be issued as depositor shares.