A legal challenge was presented to the High Court yesterday, contesting the government’s decision to amalgamate five struggling shariah-based commercial banks into a newly established state-owned Islamic financial institution known as Sammilito Islami Bank Limited. Shahidul Islam, an ordinary investor in the stock market, filed the petition with the assistance of Barrister Sayed Mahsib Hossain. The banks involved in the merger are First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and Exim Bank.
The petitioner contended that the merger was sanctioned “without safeguarding the interests of the shareholders and without allocating any shares to the existing general shareholders” of the proposed new bank. The legal representative mentioned that the High Court might schedule a hearing on the petition in the upcoming week.
The government gave the green light for the consolidation of the five shariah-based banks, all of which are publicly traded, on October 9.