Bangladesh Bank Governor Md Mostaqur Rahman has said depositors of the five merged banks will face no haircut on their profits. The central bank has also instructed Sammilito Islami Bank to make arrangements so depositors can withdraw money according to their needs from September 1.

The directive was issued during a Tuesday meeting between the governor and Sammilito Islami Bank Chairman Kazi Shairul Hasan and Managing Director Abedur Rahman Sikdar. Bangladesh Bank said the governor asked the bank to remove uncertainty among depositors over profits, stressing that all depositors must be clearly informed that no haircut will be applied.

Under a scheme announced on December 29, deposits are already being repaid, Bangladesh Bank said. From September 1, individual depositors will be able to withdraw funds beyond the specified portion of principal in Al-Wadiah current accounts, Mudaraba savings accounts and Mudaraba term deposits, based on need. The bank, launched with Tk35,000 crore in capital, was also told to take steps to resume all normal banking operations quickly.