Mohammad Ayub appointed chairman of Sammilito Islami Bank

Bangladesh Bank gave the approval of his appointment on Sunday.

The appointment follows the central bank’s final approval of the newly formed ‘Sammilito Islami Bank PLC,’ which was created by merging five financially weak banks in the country.

Bangladesh Bank said the new bank, now officially licensed, will begin full-fledged operations this week.

The five merged banks are First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank.

According to bank officials, the financial condition of these banks failed to improve despite repeated liquidity support.

Their share prices dropped sharply in the stock market and the Net Asset Value (NAV) of almost all five banks turned negative.

The consolidation aims to stabilise the banks’ precarious financial situation. Bangladesh Bank had earlier granted preliminary approval for Sammilito Islami Bank on November 9, following an application from the Ministry of Finance, reports UNB.