First Security Islami Bank agrees to join five-bank merger plan

The bank’s board told the governor they support Bangladesh Bank’s consolidation initiative, pledging capital support of Tk 350 billion

The board of First Security Islami Bank has agreed to a government-backed plan to merge five private banks, formally conveying their consent to Bangladesh Bank Governor Ahsan H Mansur.

As part of the consolidation process, the bank’s directors presented the governor with findings from a foreign audit, which outlined key financial indicators.

Following the review, the board told the central bank on Tuesday that they were willing to proceed with the merger.

“We showed the governor the financial indicators identified in the foreign audit,” the private bank’s Chairman Abdul Mannan told reporters.

A final decision is expected after meetings with all five banks involved, with the governor set to review their financial indicators before making his ruling.

Mannan said the bank placed its financial position before the governor and did not oppose the initiative.

“Our main goal is to safeguard customers’ interests, ensure job security for employees and improve the bank’s infrastructure,” he said.

He added that Tk 350 billion in capital support would be injected once the merger takes place.

Governor Ahsan, currently unwell, could not meet with EXIM Bank on Sunday or Social Islami Bank on Monday.

A senior Bangladesh Bank official said the consolidation will require Tk 350 billion, per projections, for which a proposal has been submitted to the Ministry of Finance. The ministry will provide the capital support.

The five banks lined up for merger are Social Islami Bank, EXIM Bank, Global Islami Bank, Union Bank and First Security Islami Bank.

Reform in the banking sector began after the Aug 5, 2024, change in government. Four of the five banks were controlled by Chattogram-based businessman S Alam, while EXIM Bank was overseen by Nazrul Islam Mazumder.

In September 2024, Bangladesh Bank dissolved First Security Islami Bank’s 11-member board, later sending its managing director Syed Wasek Md Ali on forced leave before removing him altogether.

First Security Islami Bank, founded in 1999, has operated as a commercial bank for over two decades.