Bangladesh Bank has directed that the shares of five Shariah-based banks undergoing merger be valued at zero, citing negative net asset values. The affected institutions—First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank—received official letters instructing them to nullify their paid-up capital under the Bank Resolution Ordinance 2025. The central bank stated that the decision followed an assessment showing each bank’s equity had turned negative.

Executive Director and spokesperson Arif Hossain Khan confirmed that the order does not require approval from the Dhaka or Chittagong stock exchanges or the Registrar of Joint Stock Companies. Governor Ahsan H. Mansur earlier explained that shareholders would not receive stakes in the newly formed Combined Islami Bank PLC, as each share’s net asset value had fallen between Tk 350 and Tk 420 below zero.

The move effectively wipes out shareholder equity, leaving investors facing heavy losses. Trading of the banks’ shares remains suspended, while the newly licensed Combined Islami Bank PLC begins operations as the country’s largest state-owned Shariah-compliant bank.