The future of Sammilito Islami Bank PLC the massive entity formed by the merger of five struggling Shariah-based banks is facing fresh uncertainty as key partners seek to exit the consolidation. Just five months after the historic December 2025 merger of Exim Bank, First Security Islamic Bank, Global Islami Bank, Union Bank, and Social Islami Bank (SIBL), the "Sammilito" structure is showing signs of strain.
SIBL Exit Move: Social Islami Bank has formally applied to Bangladesh Bank to withdraw from the merger, seeking to restructure independently under Section 18(a) of the Bank Resolution Ordinance.
Exim Bank Reconsidering: Reports suggest Exim Bank is also weighing a similar exit, prompting concerns about a lack of synergy within the centralized entity.
The Liquidity Challenge The merger was designed to stabilize institutions burdened by a combined Tk150,000 crore in defaulted loans. Despite state-backed liquidity support, the transition has been slow: Withdrawal Limits: Strict caps remain on depositor withdrawals to prevent a bank run. Public Trust: New deposits have slowed as 9.15 million account holders remain cautious about the bank's long-term viability.
Staff Uncertainty: Over 15,000 employees are navigating a transition marked by "steady but slow" operational normalization.
Bangladesh Bank spokesperson Arif Hossain Khan clarified that the state does not intend to maintain permanent control. The long-term goal remains stabilizing the assets and eventually returning them to private ownership or attracting new foreign investors. "The survival of these institutions depends entirely on the recovery of defaulted loans," experts warn. "Without recovering cash from defaulters, organizational restructuring alone will not suffice."
SIBL’s Independent Road Map
In its bid for independence, SIBL has proposed an ambitious plan to reduce its Non-Performing Loan (NPL) rate to 25% by December. However, this turnaround would require a massive Tk11,000 crore in liquidity support over the next decade, leaving analysts skeptical about its feasibility in a tightened economy.
