FSIB says it will merge under Bangladesh Bank’s reform plan for shariah-based lenders

First Security Islami Bank (FSIB) has agreed to merge under Bangladesh Bank’s merger-and-acquisition initiative targeting struggling shariah-based lenders,

FSIB Chairman Abdul Mannan told reporters after a meeting at the central bank.

Mannan said Bangladesh Bank presented an assessment of FSIB’s fundamentals at the meeting with the governor, and that its findings were consistent with reports by an overseas auditor and the bank’s own audit teams. “There were no differences between the findings,” he said.

He further alleged that entities linked to S Alam Group had “taken away” about Tk 380 billion of the bank’s assets under various names. The claim could not be independently verified.

A senior FSIB official, speaking on condition of anonymity, said the bank’s board has already decided to proceed with a merger in line with the central bank’s suggestion and conveyed that decision during the meeting.

Details of the prospective merger, such as the partner institution, timeline, and terms, were not disclosed.

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