BB approves license for ‘Sommilito Islami Bank PLC’

This new state-owned institution is set to become Bangladesh's largest state-owned and Shariah-based bank based on its capital structure, said a press release.

The establishment of Sommilito Islami Bank PLC is the culmination of a significant banking sector reform programme initiated by Bangladesh Bank in September 2024, aimed at restoring good governance, ensuring accountability, and enhancing overall discipline within the country's banking sector.

The new bank was created under the provisions of the Bank Resolution Ordinance, 2025, as a mechanism to resolve five struggling Shariah-based banks. The five banks brought under resolution were EXIM Bank PLC, First Security Islami Bank PLC, Global Islami Bank PLC, Social Islami Bank PLC, and Union Bank PLC.

The decision to establish ' Sommilito Islami Bank PLC' for the purpose of resolving these five struggling Shariah-based banks was made during an Advisory Council meeting held on October 9, 2025. 

Following this decision, on November 5, 2025, Bangladesh Bank declared the five institutions non-viable under the Bank Resolution Ordinance, 2025, and appointed administrators.

Subsequently, Bangladesh Bank issued a Letter of Intent (LOI) along with a No-Objection Certificate for the proposed bank on November 9, 2025. The bank fulfilled the conditions of the LOI by registering with the Registrar of Joint Stock Companies and Firms.

The determined paid-up capital for Sommilito Islami Bank PLC is Taka 35,000 crore. The government has already paid its portion of Taka 20,000 crore toward this capital.

Dr. Mohammad Ayub Mia, a former Secretary, has been appointed as the Chairman of the newly formed bank.

Bangladesh Bank provided strong assurance to the people that depositors should feel completely confident about the security of their deposits and that they will not lose their money.

Under the Deposit Protection Ordinance, 2025, deposits up to Taka two lakh are fully secured. For deposits exceeding Taka two lakh, payment will be supervised with maximum professionalism and efficiency, and will be repaid soon after the consolidation is complete. 

A specific repayment scheme will be published as soon as possible.

The new bank is set to operate under the close supervision of Bangladesh Bank. The government and Bangladesh Bank are committed to restoring public confidence in the banking sector. Bangladesh Bank is hopeful that this merger will contribute to making the country's banking sector stronger, more sustainable, and inclusive. 

It is anticipated that the bank will prove its potential and capability as a dynamic, modern, and competitive Shariah-based bank within a short period, reports BSS.