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Decision changed, depositors of 5 banks to get profit

In the face of widespread dissatisfaction and anger, Bangladesh Bank has withdrawn its previous decision not to pay profit on deposits of five banks that are going to be merged.

According to the latest instructions of Bangladesh Bank, these banks will pay a provisional profit at an annual rate of 4 percent for the period from January 1, 2024 to December 28, 2025 as Mudaraba savings and term deposits.

In a separate letter sent to the five banks, the banking regulatory body said that this revised decision will be applicable only to individual depositors.

Bangladesh Bank said that this decision has been taken to ensure transparency in profit distribution.

It is worth noting that a week ago, the central bank had informed these banks that no profit would be paid on deposits for 2024 and 2025. This angered depositors and led to protests and banking activities in some branches were also disrupted.

The banks in the process of merging are First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and Exim Bank.

These banks are going to merge and form a new state-owned Samalit Islami Bank PLC.

Bangladesh Bank also said that the profits that have already been distributed will have to be recalculated as needed and any excess or deficit will have to be adjusted.

In the case of monthly and daily profit-based Mudaraba deposits, the total profit for 2024 and 2025 cannot exceed the permitted annual 4 percent.

In addition, the central bank has directed these Sharia-based banks to submit a reconciliation statement to the Banking Regulation and Policy Department within three working days after the recalculation and adjustment of the profits of all Mudaraba accounts.