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Bangladesh Bank has announced significant relaxations on fund withdrawal limits for depositors of five troubled Shariah-based banks that were recently merged into a single entity. Under the updated policy, depositors can now withdraw up to BDT 10 lakh to meet medical and other urgent family needs.
The decision was approved on Wednesday, July 29, 2026, during a board meeting of Bangladesh Bank chaired by Governor Mostakur Rahman. Previously, this emergency withdrawal facility was strictly restricted to the depositor’s own medical treatment. The revised policy expands the scope to cover medical expenses for parents, children, siblings, and spouses, as well as other pressing household emergencies.
The facility will apply to customers of the five banks now merged under Combined Islamic Bank: First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank.
Central bank officials noted that the amendment was introduced to ease hardship among depositors. Recognizing that families frequently encounter sudden medical crises or urgent domestic expenses that exceed previous limits, policymakers expanded the withdrawal scope to offer immediate liquidity relief.
The government recently formed Combined Islamic Bank by merging the five struggling Shariah-compliant lenders with an authorized paid-up capital of BDT 35,000 crore. Of this capital, the government contributed BDT 20,000 crore, while the remaining BDT 15,000 crore is being issued as equity shares to existing depositors.
In parallel, a separate reimbursement initiative funded by BDT 12,000 crore from the Deposit Insurance Fund continues to pay out up to BDT 2 lakh per small depositor. Central bank data reveals that BDT 3,887 crore has already been disbursed to 822,000 depositors under this scheme, with First Security Islami Bank account holders alone receiving BDT 1,600 crore across 350,000 claims.
Despite these liquidity measures, the financial health of the merged entities remains severely strained. Total outstanding loans across the five banks reached BDT 1,95,000 crore as of December, backed by only BDT 47,900 crore in collateral—representing 24.56 percent of total advances.
Defaulted loans stand at BDT 1,70,500 crore, making up an alarming 87.43 percent of the combined loan portfolio. Central bank officials hope the expanded withdrawal limit will provide meaningful temporary respite to affected families as broader restructuring efforts continue.