Depositors of banks burdened with defaulted loans will get back their full deposits with interest, Finance Minister Amir Khosru Mahmud Chowdhury said today.
He gave the assurance in parliament while responding to a notice raised by BNP MP Rehena Akhter Ranu.
"When banks are looted, where will they go? Some cannot withdraw money for medical treatment and are dying. Looters have fled abroad and are living comfortably," she said.
Ranu urged the finance minister to ensure strict punishment for those responsible, auction their properties and return the money to depositors.
Describing the situation as "heartbreaking", Amir Khosru said that to stabilise the financial sector, five banks had been merged under the Bank Resolution Act to form the Consolidated Islami Bank.
He said that under the Depositor Protection Act 2026, the maximum protected deposit had been increased from Tk 100,000 to Tk 200,000. Depositors of banks under the resolution were gradually receiving their money back, he added, noting that depositors of finance companies had previously not been covered under the law.
The minister said a special forensic audit was underway to identify those responsible for irregular investments in the five banks. Based on the findings, measures would be taken to recover assets.
He added that civil cases would also be filed and initiatives had been taken to recover defaulted loans laundered abroad. Around 30 affected banks had signed non-disclosure agreements to pursue asset recovery. Nine international legal firms had been engaged on a "no win, no fee" basis. In the first phase, civil proceedings had begun against six priority groups, including Saifuzzaman Chowdhury, S Alam, Beximco, Sikder and NASSA.
Ranu demanded that loan defaulters be brought back from abroad and punished, arguing that auctioning their assets alone would not be enough to recover the looted sums.
She also criticised the "haircut" provision as a "death cut" for depositors, questioning why innocent depositors should bear the burden of bank looters. The term "haircut on deposits" refers to a reduction in the value of a bank deposit in situations of a severe banking crisis or debt restructuring.
She urged the finance minister to withdraw the "haircut" provision and provide relief to 7.5 million depositors.
Responding, Amir Khosru said with a smile, "I feel deeply troubled. As I have said before, this is a heartbreaking incident. But I assure you, depositors will get their money back with interest, In sha Allah. They just need to be patient."
"A loss-making bank struggles even to return deposits, let alone pay interest. But deposits and interest will be returned. It will just take time. There will be no haircut. That provision will be removed."
"I know depositors cannot wait. People are dying without treatment, parents cannot arrange their daughters' marriages. We face these problems daily. There will be a long-term solution. But I can say with certainty: depositors will get back their money, with interest," the finance minister said.
