Own money, tough conditions

Depositors of Sammilito Islami Bank are facing a series of conditions when trying to withdraw their own money, including waiving profit and future legal claims if they want to receive the principal in a lump sum.

Customers seeking full repayment of their principal are reportedly required to sign an undertaking giving up claims to profit, interest or other financial benefits and agreeing not to file any lawsuit, complaint or other legal action against the bank.

The bank’s two-page “undertaking upon application” states that once a depositor receives the principal in a lump sum, the account will be considered “fully and finally settled”.

The depositor will then be barred from making any further claim, complaint, lawsuit, application or appeal against the bank or any related individual, institution or authority. The conditions also apply to the depositor’s heirs, nominees and legal representatives.

The undertaking requires the signatures of two witnesses in addition to that of the depositor, prompting frustration among customers who say they are being asked to surrender financial and legal claims to recover their own money.

The process of returning deposits to Sammilito Islami Bank customers began on 7 September.

The state-owned bank was formed through the merger of five troubled lenders – EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.

According to the bank’s latest data, 179,682 customers applied to withdraw Tk6,975 crore between 1 and 20 September. Of them, 90,098 had withdrawn Tk3,245 crore.

During the same period, the bank received Tk2,700 crore in new deposits. Another 32,074 new accounts were opened, bringing in an additional Tk378 crore.

Deposits are being returned under a scheme announced on 29 December, 2025.

Earlier, on 14 January, Bangladesh Bank informed the administrators of the five banks that no profit would be paid on balances maintained during 2024 and 2025, with a “haircut” on profits for the two years proposed at the time.

However, Bangladesh Bank issued a notice on 25 August saying there would be no haircut on Sammilito Islami Bank customers’ deposits and that individual depositors would be able to submit applications to withdraw their principal from 1 September.

Customers allege, however, that those seeking to withdraw their entire principal at once are being required to sign the undertaking waiving profit and future legal claims.

Bangladesh Bank spokesperson Arief Hossain Khan said the banks were supposed to recover both principal and profit from borrowers before making payments to depositors.

“As the funds have not yet been recovered, customers who urgently need their money are receiving only the principal. Once the temporary crisis is over, other depositors will be able to withdraw both their principal and profit,” he said.

Sammilito Islami Bank Managing Director Md Abedur Rahman Sikder told the Daily Sun that funds were continuing to flow into the bank alongside payments to depositors.

“Transactions are proceeding normally in individual accounts, and this process will continue,” he said. “Overall, payments are being made in accordance with customers’ applications, and a significant number of customers are withdrawing their funds every day. At the same time, the flow of funds into the bank and regular transaction activities are continuing.”

Depositors are also complaining about lengthy delays in securing approval for withdrawals.

A First Security Islami Bank depositor in Mymensingh Sadar said his DPS and FDR matured on 1 September, after which he applied to encash them and withdraw part of the funds, including profit, for an emergency.

He said the branch manager told him approval had not yet arrived from the head office. More than 22 days later, there had been no progress in releasing the money.

Another depositor at First Security Islami Bank’s Mymensingh Sadar branch, Sajid Hossain, said he applied to encash his matured FDR and DPS to meet an urgent need but had not received approval even after 20 days.

He said implementation at the branch level remained slow even after the notification cancelling the haircut was issued.

Belal Hossain, a Union Bank depositor, said his two-year FDR matured in January 2026. On the bank’s advice, he renewed it for another three years in March.

When he later sought to withdraw the money, he was asked to apply with calculations covering profits for the previous two years as well as an additional year.

“I want the bank to return to normal. But if I have to give up my profit and future legal claims just to get my money back, why would people keep their hard-earned money here?” he said.

Depositors have also complained that a promised three-day settlement period for urgent applications is not being followed at many branches.

Azizur Rahman said he applied at Union Bank’s Rajshahi branch on 6 September and was asked to contact the bank again on 20 or 21 September.

When he contacted the bank on 20 September, he was told to visit the branch the following day. He took leave from work and went to the bank, only to be told that approval had still not arrived from the head office.

Customers have also objected to the requirement to waive future claims.

Mohammad Kayes, an EXIM Bank depositor, said: “The undertaking being taken is illegal and is causing financial losses to depositors. We want remedy and fairness in this matter.”

Some depositors said their main expectation was for the bank to return to normal operations. 

However, delays in repayments, uncertainty over profits, the requirement to waive future legal claims for lump-sum withdrawals and the slow approval process were further eroding confidence.

They questioned why ordinary people would deposit their savings with the bank again if they had to surrender profit and future claims to recover their principal.

Bank authorities, however, say they must balance urgent repayments to customers against liquidity constraints and the pace of loan recovery.

Meanwhile, Sammilito Islami Bank on Monday sent a letter to divisional heads and branch managers regarding revisions to profit rates for individual term and scheme-based deposits and the recalculation of deposit balances. The new profit rates have yet to be finalised.

The letter also instructed branches to verify documents involving deceased depositors and return funds to heirs or other legitimate claimants. 

Branches were also told to unblock eligible blocked accounts after completing the necessary verification and arrange withdrawals.

Although nearly 180,000 customers applied to withdraw funds between 1 and 20 September, not all have proceeded with the withdrawals. 

Some are reportedly reluctant to accept the conditions requiring them to give up profit and future legal claims in exchange for receiving their principal.

The bank is therefore facing pressure on two fronts: handling a large volume of withdrawal requests while trying to attract and retain deposits.