Bangladesh Bank has reviewed the progress of loan recovery, restructuring, and overall operations of Sammilito Islami Bank PLC.
Prioritizing defaulted loan recovery to safeguard depositors' interests, the bank has already filed around 10,000 lawsuits, with the process underway to file more.
On Thursday (August 27), the overall progress of the bank was reviewed during a meeting between Bangladesh Bank Governor Md Mostakur Rahman and the central bank's bank resolution department.
The meeting discussed the merger and restructuring of the bank, reorganization of the board of directors and management, human resource adjustments, branch integration, as well as the alignment of IT and operational activities.
These initiatives are being implemented under the guidance and supervision of Bangladesh Bank, while the BRD is regularly monitoring and following up on the progress.
It was informed during the meeting that alongside conventional legal actions to recover defaulted loans, the bank has also initiated compromise-based measures through an alternative loan settlement policy and Alternative Dispute Resolution (ADR) mechanisms.
Meanwhile, a forensic audit is in its final stages to identify individuals involved in irregularities, corruption, loan fraud, and asset misappropriation that occurred under the bank's previous ownership and management.
Over the past six months, several major steps have been taken to restructure and coordinate the bank's activities.
The Board of Directors has been reconstituted with a focus on independent directors. A new CEO was appointed on July 16.
Work has been finalized to realign the designations, responsibilities, and organizational structure of nearly 16,000 officers and employees to manage the merged operations of five banks.
Progress is ongoing to integrate Core Banking Systems (CBS), Swift for international transactions, and related IT infrastructure to bring the operations of all five banks under a unified framework.
A unified system has been established, allowing depositors to withdraw funds from any branch across the five banks.
Operational integration, reorganization, and consolidation are currently underway for 780 branches and 1,500 business units based on location, business potential, customer service, and operating costs.
Bangladesh Bank stated that it is closely monitoring the progress of Sammilito Islami Bank's restructuring, loan recovery, case resolution, HR management, branch/business unit mergers, and technological integration.
The central bank expects that these combined measures will enhance the bank's governance, operational efficiency, and financial capacity.
Furthermore, it will accelerate loan recovery, reduce operational costs, and help re-channel stuck funds back into productive sectors.
Starting its journey as Bangladesh's largest state-owned Shariah-based bank with a capital of Tk35,000 crore, ensuring transparency, accountability, and good governance in managing Sammilito Islami Bank PLC's assets and deposits remains a top priority for Bangladesh Bank.
