Print: 03 Nov 2025
As part of the planned bank merger process, Bangladesh Bank was scheduled to meet with five banks, starting with EXIM Bank on Sunday.
Although EXIM Bank Chairman Nazrul Islam Swapan and other board members arrived at the central bank, the meeting did not take place as the governor was unwell.
“The governor sir is sick, so he did not come to Bangladesh Bank. That’s why the meeting did not happen,” Swapan told reporters. “We were informed we would be called again once he recovers.”
Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan, however, said: “As far as I know, sir (the governor) was not supposed to come to the office on Sunday.”
The central bank has initiated discussions to merge EXIM, Social Islami, First Security Islami, Union, and Global Islami Bank into a single Islamic bank. The meetings are intended for the boards of these banks to present their financial positions and discuss the merger plan.
Despite receiving substantial liquidity support from Bangladesh Bank over the past year, the five banks’ financial health has not improved. The central bank has now reached the final stage of the merger process, arranging hearings with the boards and top executives of the institutions to gather their opinions before making a final decision.
According to the schedule, Social Islami Bank will attend today (1 September), First Security Islami Bank on 2 September, Union Bank on September 3, and Global Islami Bank on September 4. All chairmen, directors, and managing directors have been asked to be present.
Last week, Bangladesh Bank also sent letters to the banks asking them to provide updated data on capital, liquidity support, non-performing loans, cash reserve ratio (CRR), and provisioning shortfalls. They were further instructed to explain in writing why they should not be merged and to hold board meetings ahead of the hearings.
Resistance to merger
Among the five banks, EXIM and Social Islami have consistently opposed the move.
Nine shareholders of Social Islami Bank, including former chairman and current director Rezaul Haque, recently wrote to the central bank governor and the finance secretary requesting exclusion from the process. The shareholders alleged that S. Alam Group has taken control of the bank and siphoned off thousands of crores of taka, calling the merger move “unjust and illegal” without consulting original sponsor shareholders. EXIM Bank Chairman Swapan has also reiterated opposition, saying: “We will present our financial improvement data and seek time. EXIM Bank will be able to perform better in the future.” The bank plans to submit an independent survival strategy to Bangladesh Bank.
Weak financial indicators
Over the past 15 years, Bangladesh Bank has engaged international audit firms to probe irregularities and loan scams in the sector. In an attempt to stabilise struggling banks, the central bank injected large sums of liquidity into the five institutions.
EXIM Bank received the highest amount, Tk8,500 crore, followed by First Security Islami Bank (Tk7,050 crore), Social Islami Bank (Tk6,675 crore), Union Bank (Tk2,400 crore), and Global Islami Bank (Tk2,295 crore).
Yet, their financial position remains precarious. Combined deposits of the five banks fell to Tk1,36,546 crore in May, while their non-performing loans (NPLs) surged to nearly Tk1,47,000 crore, around 77% of total loans. The provisioning shortfall of the banks now stands at Tk74,501 crore. Union Bank has the highest NPL ratio at 98%, followed by First Security Islami (96%), Global Islami (95%), Social Islami (62%), and EXIM (48%).
The prolonged instability and resistance from some banks have raised doubts about whether the merger initiative, revived after being stalled for over a year, will succeed, especially with the national election looming early next year.
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Merger or takeover: BB sets final talks on five troubled banks
As part of the planned bank merger process, Bangladesh Bank was scheduled to meet with five banks, starting with EXIM Bank on Sunday.
Although EXIM Bank Chairman Nazrul Islam Swapan and other board members arrived at the central bank, the meeting did not take place as the governor was unwell.
“The governor sir is sick, so he did not come to Bangladesh Bank. That’s why the meeting did not happen,” Swapan told reporters. “We were informed we would be called again once he recovers.”
Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan, however, said: “As far as I know, sir (the governor) was not supposed to come to the office on Sunday.”
The central bank has initiated discussions to merge EXIM, Social Islami, First Security Islami, Union, and Global Islami Bank into a single Islamic bank. The meetings are intended for the boards of these banks to present their financial positions and discuss the merger plan.
Despite receiving substantial liquidity support from Bangladesh Bank over the past year, the five banks’ financial health has not improved. The central bank has now reached the final stage of the merger process, arranging hearings with the boards and top executives of the institutions to gather their opinions before making a final decision.
According to the schedule, Social Islami Bank will attend today (1 September), First Security Islami Bank on 2 September, Union Bank on September 3, and Global Islami Bank on September 4. All chairmen, directors, and managing directors have been asked to be present.
Last week, Bangladesh Bank also sent letters to the banks asking them to provide updated data on capital, liquidity support, non-performing loans, cash reserve ratio (CRR), and provisioning shortfalls. They were further instructed to explain in writing why they should not be merged and to hold board meetings ahead of the hearings.
Resistance to merger
Among the five banks, EXIM and Social Islami have consistently opposed the move.
Nine shareholders of Social Islami Bank, including former chairman and current director Rezaul Haque, recently wrote to the central bank governor and the finance secretary requesting exclusion from the process. The shareholders alleged that S. Alam Group has taken control of the bank and siphoned off thousands of crores of taka, calling the merger move “unjust and illegal” without consulting original sponsor shareholders. EXIM Bank Chairman Swapan has also reiterated opposition, saying: “We will present our financial improvement data and seek time. EXIM Bank will be able to perform better in the future.” The bank plans to submit an independent survival strategy to Bangladesh Bank.
Weak financial indicators
Over the past 15 years, Bangladesh Bank has engaged international audit firms to probe irregularities and loan scams in the sector. In an attempt to stabilise struggling banks, the central bank injected large sums of liquidity into the five institutions.
EXIM Bank received the highest amount, Tk8,500 crore, followed by First Security Islami Bank (Tk7,050 crore), Social Islami Bank (Tk6,675 crore), Union Bank (Tk2,400 crore), and Global Islami Bank (Tk2,295 crore).
Yet, their financial position remains precarious. Combined deposits of the five banks fell to Tk1,36,546 crore in May, while their non-performing loans (NPLs) surged to nearly Tk1,47,000 crore, around 77% of total loans. The provisioning shortfall of the banks now stands at Tk74,501 crore. Union Bank has the highest NPL ratio at 98%, followed by First Security Islami (96%), Global Islami (95%), Social Islami (62%), and EXIM (48%).
The prolonged instability and resistance from some banks have raised doubts about whether the merger initiative, revived after being stalled for over a year, will succeed, especially with the national election looming early next year.