Islami Bank to form subsidiary for mobile financial services
Islami Bank will hold at least 51% of the shares of the subsidiary
Islami Bank Bangladesh PLC has decided to form a subsidiary to provide mobile financial services (MFS).
The decision was taken at a meeting of the bank's board of directors today (22 January), held at its boardroom, subject to the completion of all regulatory formalities.
As per the decision, the authorised capital of the proposed subsidiary will be Tk1,000 crore, while the initial paid-up capital will be Tk50 crore. The paid-up capital will be increased gradually in line with investment requirements.
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According to a price-sensitive disclosure, Islami Bank will hold at least 51% of the shares of the subsidiary, while the remaining shares may be offered to strategic investors in accordance with Bangladesh Bank's MFS guidelines.
Md. Omar Faruk Khan, managing director of Islami Bank, said, "The bank has decided to launch a Mobile Financial Service (MFS), and the necessary documents are being prepared for submission to the central bank."
According to the bank's website, Islami Bank currently operates its own MFS platform, mCash, which was launched in December 2012.
Through mobile phones, mCash offers services including cash deposits and withdrawals, fund transfer from one account to another, receiving remittance from abroad, checking account balance and mini-statement, giving and receiving salary, mobile recharge and payment of utility bill, merchant bill payment.
According to the bank's unaudited consolidated financial statements, Islami Bank reported a profit of Tk99.77 crore in the first nine months of 2025 (January–September), down from Tk267.72 crore in the same period of 2024. In 2024, the bank posted a net profit of Tk10,878 crore, a significant decline from Tk635.33 crore, and did not pay any dividends to shareholders.
