Customers withdraw Tk670cr from Sammilito Islami Bank in two days
Depositors Pull Tk670 Crore from Newly Merged Sammilito Islamic Bank in Two-Day Window
Bdbusinessdaily.com – The freshly consolidated Sammilito Islamic Bank processed Tk670 crore in actual cash outflows across its nationwide branch network over a two-day span ending 8 September, even though customers had filed applications totalling Tk2,345 crore during the same period. The gap between requested and disbursed amounts underscores a pattern familiar to depositors of recently restructured institutions: many who queued for withdrawals ultimately chose to keep their funds in place after visiting a branch and reviewing their account standing.
Scale of the Outflow
Roughly 14,000 account holders completed withdrawals during the two-day window, while approximately 37,600 had submitted formal requests beforehand. A senior official at Bangladesh Bank confirmed the figures and noted that the second day saw a modest uptick in completed transactions, largely because depositors unable to reach a branch on the first day made the trip the following morning. In every case, the bank honoured the full amount requested, processing payments through standard operational channels without imposing ad hoc restrictions.
The disparity between the 37,600 applications and the 14,000 completed withdrawals suggests that a substantial share of anxious depositors reconsidered once they encountered normal service conditions at the counter. Rather than a panicked run, the episode resembled a cautious stress test in which most participants opted to stay put after confirming that their balances remained intact and accessible.
Management Response
Md Abedur Rahman Sikder, managing director of Sammilito Islamic Bank, framed the two-day episode as evidence of stabilising confidence rather than erosion of trust. He pointed to a visible influx of new account openings at multiple branches during the same period, signalling that the institution was not merely retaining existing customers but attracting fresh deposits.
"Many customers are visiting branches, reviewing the overall transaction situation and leaving without withdrawing their deposits. New customers are also opening deposit accounts at many of our branches."
His remarks carry weight in a market where the mere announcement of a merger among mid-tier banks can trigger speculative outflows. By highlighting both the low conversion rate from application to actual withdrawal and the simultaneous growth in new accounts, the managing director attempted to reframe the narrative from one of flight to one of reassessment.
Merger Background and Institutional Scale
Sammilito Islamic Bank came into existence through the consolidation of five separate institutions: First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank. Together, those five entities operated 761 branches across Bangladesh, giving the merged entity one of the larger physical footprints among the country's Islamic banking houses. The integration was part of a broader regulatory push to rationalise the banking sector, reduce overlap in mid-tier lending, and create institutions with sufficient capital depth to compete alongside the largest commercial banks.
For depositors of the five predecessor banks, the merger raised immediate practical questions: Would balances remain accessible? Would branch locations continue operating? Would service quality degrade during the transition? The Tk3,925 crore in aggregate withdrawal applications filed by 74,000 customers across the combined customer base reflected those anxieties in concrete financial terms.
Central Bank Liquidity Backstop
To ensure that the merged institution could meet any surge in redemption demands without disrupting interbank settlement, Bangladesh Bank extended Tk5,000 crore in liquidity to Sammilito Islamic Bank on the Sunday preceding the two-day withdrawal window. Those funds were routed from the head office to individual branches, guaranteeing that tellers had sufficient cash on hand to honour every completed application in full. The injection functioned as a precautionary backstop rather than a rescue operation; the fact that only Tk670 crore was actually drawn down indicates that the liquidity cushion proved more than adequate for the realised demand.
Broader Implications for the Sector
The episode offers a useful data point for regulators and market participants monitoring post-merger stability. A conversion rate of roughly 37 percent (14,000 completed withdrawals against 37,600 applications) is well below the thresholds that typically signal a genuine deposit run. Combined with the reported opening of new accounts during the same window, the two-day experience suggests that the merged bank's customer base, while understandably alert to institutional change, did not interpret the merger as a credit event warranting wholesale exit.
For the wider Islamic banking segment in Bangladesh, the outcome reinforces the view that well-capitalised mergers, backed by explicit central-bank liquidity arrangements, can absorb initial depositor anxiety without triggering systemic contagion. The 761-branch network now operating under a single management structure will face its next test not in cash counters but in loan book quality, digital service continuity, and the ability to convert retained deposits into productive lending over the coming quarters.
Related Reading
Frequently Asked Questions
What is Customers withdraw Tk670cr from Sammilito Islami?Customers withdraw Tk670cr from Sammilito Islami is the main topic of this guide. The article explains the context, practical details, and next steps readers should understand.
Why does Customers withdraw Tk670cr from Sammilito Islami matter?Customers withdraw Tk670cr from Sammilito Islami matters because readers are looking for a useful answer, not just a short summary. Good content should match search intent and help them decide what to do next.