United Islami Bank gets BB’s nod to merge five lenders

The Bangladesh Bank has granted preliminary regulatory approval to form a new state-run Shariah-based bank titled United Islami Bank PLC, marking a significant step in the country’s first large-scale banking merger.

The central bank’s board, in a special virtual meeting on Sunday, approved the Letter of Intent (LoI), allowing the government to proceed with the legal formation and registration of the new entity.

The proposed merger will consolidate five financially distressed Islamic banks — Social Islami Bank PLC (SIBL), First Security Islami Bank PLC (FSIB), EXIM Bank PLC, Global Islami Bank PLC, and Union Bank PLC — under one umbrella.

According to officials, Financial Institutions Division Secretary Nazma Mobarek will serve as the chairperson of the new bank’s board.

Other board members include Finance Division Secretary Md Khairuzzaman Mozumder, Chief Adviser’s Office Secretary M Saifullah Panna, Ministry of Religious Affairs Secretary Md Kamal Uddin, Economic Relations Division Secretary Md Shahriar Kader Siddiky, Finance Division Joint Secretary Mohd Rashedul Amin, and Financial Institutions Division Joint Secretary Sheikh Farid. Two private-sector representatives will be appointed later.

Following the approval, the finance ministry will apply to the Registrar of Joint Stock Companies and Firms (RJSC) to complete the incorporation process.

On 5 November, the Bangladesh Bank dissolved the boards of the five banks and appointed administrators under the Bank Resolution Ordinance, 2025, to oversee the transition.

Once operational, United Islami Bank will become the largest Shariah-based state-owned bank in Bangladesh, aimed at strengthening governance, restoring depositor confidence, and stabilising the Islamic banking sector.