Sammilito Islami Bank files 10,000 cases to recover defaulted loans

Sammilito Islami Bank PLC has filed around 10,000 cases to recover defaulted loans, as Bangladesh Bank steps up monitoring of the country’s largest state-owned Shariah-based Islamic bank and moves to safeguard depositors’ money.

The figure was disclosed at a meeting held at Bangladesh Bank headquarters to review the bank’s loan recovery, restructuring and overall progress. BB Governor and officials of the Bank Resolution Department (BRD) attended the meeting, according to a central bank press release.

More loan recovery cases are currently being processed, with the bank pursuing both court action and settlement-based measures. 

These include the Exit Policy and Alternative Dispute Resolution (ADR), aimed at speeding up the recovery of outstanding funds.

The BRD is regularly tracking the progress of the cases and monitoring the bank’s broader reconstruction and integration process.

The meeting also reviewed efforts to identify those allegedly responsible for irregularities, corruption, loan fraud and misuse of assets under the bank’s previous ownership and management. 

A forensic audit launched for this purpose is now nearing completion.

Bangladesh Bank expects the intensified recovery efforts, along with alternative dispute resolution, to help bring stuck funds back into productive use.

The central bank also reviewed progress on the bank’s restructuring, including the reconstitution of its board with a greater focus on independent directors. 

A new CEO took charge on July 16, 2026, while organisational changes involving around 16,000 employees are also underway.

Meanwhile, work is progressing to bring the Core Banking System, SWIFT and RMA infrastructure of the five banks under a unified framework.

Bangladesh Bank said it is closely monitoring loan recovery, case disposal, corporate governance, human resource management, branch rationalisation and technological integration at Sammilito Islami Bank.

The bank began operations with Tk 35,000 crore in capital, making it the country’s largest state-owned Shariah-based Islamic bank.

BB said ensuring transparency, accountability and sound governance in the management of the bank’s assets and deposits remains a key priority.