The government has taken an initiative to merge five listed Islamic banks—First Security Islami Bank, Social Islami Bank, EXIM Bank, Global Islami Bank, and Union Bank—into a single entity. However, Bangladesh Bank has yet to clarify what will happen to the existing shareholders after the merger, leaving general investors in a state of uncertainty and panic.
Speculation has been rife in the capital market. At times, rumors have spread that shareholders will lose their entire holdings after the merger; at other times, reports suggested they might receive partial compensation. These conflicting signals have caused sharp price fluctuations, with the shares of the five banks recently hitting their lower limits for consecutive trading days, often with no buyers in the market.
Dhaka Stock Exchange (DSE) Director Md. Shakil Rizvi said, “It’s crucial to provide a clear statement on what will happen to the shareholders once the banks are merged.”
Dhaka Brokerage Association (DBA) President Saiful Islam echoed similar concerns, saying, “The lack of clarity is fueling speculation and negatively affecting the overall market.”
Officials from Bangladesh Bank stated that the merger process will follow the Bank Resolution Ordinance–2025, which is expected to take at least two years to complete.
Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) has sent a letter to Bangladesh Bank, urging it to ensure that the interests of general investors are protected during the merger process.