Sammilito Islami Bank resumes transactions today

Sammilito Islami Bank PLC will resume normal banking operations for individual account holders today, with principal deposit withdrawals set to begin on 7 September, according to a special circular issued Monday.

Under the guidelines, customers can withdraw or encash the full principal amount of their individual accounts in a single transaction. 

However, those choosing to withdraw their principal will forfeit any accrued profit on the amount.

Branches and sub-branches will accept withdrawal applications starting today (1 September), but payouts will commence on 7 September following necessary cash-management preparations.

In the circular, Deputy Managing Director and Chief Coordinator of Operations A F Sabbir Ahmed directed all department heads, zonal heads, and branch managers to complete operational preparations and strictly adhere to the guidelines.  

The bank noted it requires time to collect cash requisitions across its network, secure adequate funds from Bangladesh Bank, and ensure secure cash delivery prior to commencing payouts.

Customers will be able to withdraw their principal deposits from Al-Wadiah current accounts, Mudaraba savings accounts and various term deposit accounts, including MTDR (Mudaraba Term Deposit Receipt) and DPS (Deposit Pension Scheme) accounts.

Customers who choose to keep their accounts active will continue to receive profits at the predetermined rates according to the terms and conditions of their agreements.

Those who urgently need money and want to close their term deposits will also be allowed to withdraw the entire principal amount, but they will forfeit any profit on the withdrawn amount.

Once the bank’s operations return to full capacity, customers will be able to deposit and withdraw funds, including profits, under normal banking operations.

Meanwhile, Bangladesh Bank has cancelled the proposed “haircut” on part of the profits of Sammilito Islami Bank depositors for 2024 and 2025. As a result, depositors will be entitled to the full declared profit on their term deposits.

To restore customer confidence and create a positive banking experience, Sammilito Islami Bank has declared 1 September as “Customer First: Payment & Service Excellence Day” across its head office, zonal offices, branches and sub-branches.

The bank has instructed branches to create a clean, welcoming environment with adequate seating, proper lighting and organised service counters.

Employees have been asked to wear prescribed formal attire, greet customers warmly, listen to their concerns and provide accurate information and services promptly.

Branches have also been instructed to welcome customers with flowers or gifts and provide priority services to senior citizens, women and customers with disabilities.

Branch managers and in-charges have been directed to ensure the programme is properly organised, with customer service and satisfaction receiving the highest priority.

Each branch has also been instructed to prepare photos and videos of the day’s activities and send footage to designated WhatsApp numbers.

The bank said the initiative is not merely a one-day event but aims to rebuild customer confidence, provide relief and create positive expectations surrounding the resumption of banking services, while improving overall customer service.

Sammilito Islami Bank was formed through the merger of EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank after the five lenders faced prolonged financial difficulties and deposit repayment problems stemming from various irregularities and alleged fraud.

The five banks have around 7.6 million depositors and total deposits of Tk1.42 lakh crore. Individual depositors hold around Tk15,000 crore in savings accounts.

The banks have total loans of around Tk1.92 lakh crore, of which 86% are classified as non-performing loans (NPLs). Their combined capital shortfall stands at more than Tk1.5 lakh crore.

Sammilito Islami Bank, which began operations in November last year as a state-owned bank, has authorised capital of Tk40,000 crore and paid-up capital of Tk35,000 crore.

The government has provided Tk20,000 crore of the paid-up capital, while the remaining Tk15,000 crore will be allocated as shares to depositors.