Bangladesh Bank Reverses Decision on Sammilita Islami Bank Profits

In a major regulatory reversal in Dhaka, Bangladesh Bank has officially cancelled its previous decision regarding the reduction of deposit profits for customers of Sammilita Islami Bank. The central bank has instead issued a clear directive instructing the institution to recalculate and determine account profits strictly in accordance with the effective profit rates applicable during the relevant timeframe.

The policy shift specifically addresses a controversial period spanning from January 1, 2024, to December 28, 2025. During this timeframe, the central bank has ruled that personal and non-institutional fixed deposits, as well as installment-based deposits, will no longer be subjected to a flat and reduced profit rate of 4 percent, discarding the earlier haircut approach entirely.

This significant banking update was formally communicated through an official letter issued on September 10, 2026. The document was signed by Shams Tabrej Bhuiyan, who serves as the additional director of the Bank Resolution Department at Bangladesh Bank, marking a crucial step in the ongoing oversight of the newly formed financial institution.

Sammilita Islami Bank itself is a newly established entity that came into existence following the formal merger of five separate banking institutions. As the central bank oversees the integration and stabilization of these merged operations, this latest instruction aims to protect the interests of everyday depositors by ensuring their returns reflect actual effective rates rather than arbitrarily slashed figures.

By stepping away from the previous haircut strategy, regulatory authorities have provided much-needed clarity for individual and non-institutional account holders who had experienced uncertainty regarding their deposit yields. The Bank Resolution Department's directive now requires Sammilita Islami Bank to adjust its financial calculations accordingly to comply with the revised central bank standards.