SIB depositors to get profit at 9.5% rate, says Governor Ahsan H Mansur

The profit will be applicable from January this year to savings held for one year or longer

Depositors of the Sammilito Islami Bank, formed through the merger of five olders banks, will receive profit at the market rate of up to a maximum of 9.5 percent from January this year, Bangladesh Bank Governor Ahsan H Mansur says.

The governor made the announcement at an emergency press briefing at the central bank on Thursday afternoon. “We have decided to pay all depositors profit at the market rate. This profit will be paid on savings held for one year or longer,” he said.

He said depositors would receive profit at a rate of 4 percent only for 2024 and 2025. Those depositors whose funds cannot be repaid immediately will receive profit on their deposits at a rate of up to 9.5 percent from January this year.

That means customers will receive the profit for this January in February on savings held for one year or more.

Ahsan Mansur said depositors under monthly savings schemes would receive profit every month. “Customers will be able to withdraw the full amount of the monthly profit,” he said.

The governor said profit for the previous month would be paid at the beginning of each month.

“It is not possible to pay all depositors their entire money at once. If you open the sluice gate fully, there will be flooding—you have to release the water gradually. Similarly, we cannot pay all the money at once; it has to be done in a controlled manner,” he said.

The briefing was called following allegations that certain individuals and bankers were spreading “rumours and propaganda” about Sammilito Islami Bank.

Calling the profit being paid to depositors an act of “benevolence” by the government, the governor said: “Under international norms, no profit would be payable. But the government is providing it.”

The government formed Sammilito Islami Bank by merging five Shariah-based banks—EXIM Bank, First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank—which had been hit by financial crisis following loan defaults.

On Jan 14, the central bank argued that as the banks had incurred losses, no returns could be distributed for 2024 and 2025. This move was framed as a "haircut" on deposits, with the regulator citing international resolution protocols and Shariah principles which dictate that losses must be shared when profits are absent.

It reversed the earlier decision and approved profit payments for depositors of five merged banks at a 4 percent rate following criticism and protests.

The governor said paying profit at 4 percent alone would cost Tk 45 billion. However, protesting depositors did not accept the decision.

Referring to that, he said: “Some people are spreading provocative propaganda and rumours about Sammilito Islami Bank in exchange for money. This will not continue for long.”

The governor said depositors of nine non-bank financial institutions (NBFIs) slated for liquidation would receive only their principal amounts, with no interest or profit.

Asked about videos circulating on social media showing disorder at some branches in Dhaka and Chattogram, the governor said the matter was under their monitoring and assistance from law enforcing agencies would be sought if necessary.

He also said “their untoward activities” were responsible for Sammilito Islami Bank not being inaugurated on the scheduled date.