Sammilito Islami Bank Depositors Can Withdraw Principal From September 1: Bangladesh Bank

🏛 Individual depositors of Sammilito Islami Bank PLC will be able to withdraw the principal amount of their deposits as needed from September 1, 2026, according to a Bangladesh Bank announcement. The decision was communicated during a meeting between Bangladesh Bank Governor Md Mostaqur Rahman and Sammilito Islami Bank Chairman Kazi Shairul Hasan and Managing Director Abedur Rahman Sikder. Prothom Alo English reported the development on August 25, 2026.

📝 Meeting Details

The meeting was held to address ongoing concerns among depositors following the merger of five banks into Sammilito Islami Bank PLC. Deputy Governors Md Habibur Rahman, Md Kabir Ahmed, Md Sarwar Hossain, and Md Anis Ur Rahman were also present at the meeting.

• 👥 Bangladesh Bank Governor: Md Mostaqur Rahman
• 🏛 Sammilito Islami Bank Chairman: Kazi Shairul Hasan
• 🏛 Managing Director: Abedur Rahman Sikder
• 👥 Four Deputy Governors also present
• 📰 Source: Prothom Alo English, August 25, 2026

💰 No Haircut on Depositor Profits

At the meeting, the governor said that although the Finance Minister had announced in parliament that there would be no "haircut" on depositors' profits, some confusion remained among depositors. The bank must therefore clearly inform all its depositors that no haircut will be imposed on their profits.

"The finance minister had announced in parliament that there would be no haircut on depositors' profits, but some confusion remained among depositors," the governor stated during the meeting.

📅 Withdrawal Details from September 1

From September 1, individual depositors will be able to withdraw the principal amount from:

• 💰 Al-Wadiah current accounts
• 💰 Mudaraba savings accounts
• 💰 Mudaraba term deposits

Sammilito Islami Bank has been instructed to make the necessary arrangements for the expanded withdrawal facility. Deposits are already being repaid in accordance with the scheme announced on December 29 last year.

🏛 Background: The Haircut Decision

On January 14, 2026, Bangladesh Bank decided to impose a haircut — or profit reduction — on the five merged banks. In a letter sent to the administrators of the five banks, the central bank said depositors would not receive profits on their balances for 2024 and 2025. Bangladesh Bank had decided to apply the two-year profit haircut in line with international practice.

• 📅 Haircut decision: January 14, 2026
• 💰 Profit withheld: For years 2024 and 2025
• 🏛 Basis: International practice for bank mergers
• ⚠ Depositors had protested the decision from the outset
• ✅ The rule has now been withdrawn

📊 Sammilito Islami Bank: Scale and Significance

According to Bangladesh Bank's statement, Sammilito Islami Bank PLC was formed with capital of around Tk 350 billion, making it the country's largest and only state-owned Islamic bank. The bank was created through the merger of five banks as part of broader banking sector reforms.

• 💰 Capital: Approximately Tk 350 billion
• 🏛 Status: Largest state-owned Islamic bank in Bangladesh
• 🤝 Formed by merging five banks
• 📊 Instructed to restore normal operations quickly

📈 Banking Sector Reform Context

The merger and subsequent deposit access measures are part of Bangladesh's broader banking sector reform efforts. The banking sector has been facing multiple challenges including:

• ⚠ High non-performing loans (NPLs)
• 🏛 Governance issues at several banks
• 💰 Capital adequacy concerns
• 📈 DSE turnover plunging 58% in 15 sessions
• 📊 Meghna Bank raising Tk 400 crore through bonds

👥 Depositor Relief

The withdrawal of the haircut rule and the expanded deposit access from September 1 provide significant relief to depositors who had been anxious about their savings. The decision should help restore confidence in the banking sector, which is critical for Bangladesh's economic stability.

Officials expect Sammilito Islami Bank to further expand the scope of normal transactions available to individual depositors from September 1, as the bank works to restore its operations to normal.

🏛 The announcement marks a positive step towards restoring depositor confidence in Bangladesh's banking sector. The withdrawal of the haircut rule and expanded deposit access should help stabilise the financial system and support economic recovery.