Customers of Merged Banks Can Withdraw Up to BDT 1 Million for Emergencies

Customers of the five recently merged Islamic banks in Bangladesh can now withdraw up to 1 million Bangladeshi Taka (BDT) for medical treatment and other urgent needs. Previously, this facility was restricted solely to the account holder's own medical expenses. The updated policy, approved by the Bangladesh Bank's board of directors on Wednesday, chaired by Governor Mostafizur Rahman, now extends the withdrawal privilege to cover medical treatments for parents, children, siblings, and spouses, as well as other critical family emergencies. This enhanced withdrawal option applies to customers of First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank. The decision stems from a revision of the scheme designed to repay depositors, prioritizing family medical needs and other pressing requirements. A Bangladesh Bank official noted that many customers face sudden financial needs beyond medical bills, including other essential family expenses. The consolidated bank, formed by merging the five Sharia-compliant banks facing financial distress last year, has a paid-up capital of BDT 35 billion, with the government contributing BDT 20 billion and depositors receiving shares for the remaining BDT 15 billion. Meanwhile, a program is underway to repay deposits up to BDT 200,000 from the deposit insurance fund, with BDT 12 billion allocated. To date, BDT 3.887 billion has been disbursed to 822,000 depositors, including BDT 1.6 billion to 350,000 customers of First Security Islami Bank. As of December, the total outstanding loans of the five banks stood at BDT 195 billion, with collateral amounting to BDT 47.9 billion, representing 24.56% of the total loans. The current non-performing loan (NPL) ratio has reached BDT 170.5 billion, or 87.43% of total loans.