Bangladesh Bank Governor Ahsan H. Mansur has announced that the process of merging five troubled Islamic banks — First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank — will begin within a week.
In an interview with a private television channel, Mansur said asset valuation reviews of these banks have been completed, revealing non-performing loan (NPL) rates ranging from 48% to 96%.
The merged entity will be managed under government supervision, and necessary budget allocations have been requested from the government.
The governor indicated that similar steps may be taken for at least 20 more banks, including state-owned ones.
He also confirmed that 82% of the shares of a private Islamic bank owned by S. Alam Group are being offered to domestic or foreign investors, with the proceeds intended to cover the bank’s financial shortfall.
Mansur clarified that the government has no immediate plans to shut down any weak banks and is committed to providing maximum support to keep them operational.
