Bangladesh Bank has stepped back from its previous "haircut" decision to reduce profit calculations for depositors of Sammilito Islami Bank, which was formed by merging five banks.
As a result, instead of providing profit at a fixed rate of 4%, deposit accounts will be recalculated according to the bank's effective profit rate during the relevant period.
This directive was issued on Thursday (September 10) in a letter signed by Shams Tabriz Bhuiyan, additional director of the Bank Resolution Department of Bangladesh Bank.
According to the new instructions, profit for personal or non-institutional term deposits and installment-based deposits from January 1, 2024, to December 28, 2025, will no longer be fixed at a 4% rate.
Each deposit account must be reassessed taking into account the effective profit rate of the bank during that period.
In addition, the bank's recalculated profit rate will apply for an interim period of three days from December 29 to December 31, 2025.
The Bangladesh Bank letter stated that the previous haircut instructions were reconsidered to restore depositor confidence, ensure the long-term stability of the bank, and address the practical complexities of profit adjustment.
Consequently, profit for personal term and installment depositors for that period will no longer be calculated at a uniform 4%.
Instead, each account balance must be recalculated based on the effective profit rate of that time.
With this decision, the previous measure to limit personal depositors' profit to 4% at Sammilito Islami Bank has effectively been cancelled.
Depositors' dues will now be recalculated based on the bank's effective profit rate during the specified period.
