Former owners of Social Islami Bank have moved to reclaim control of the troubled lender under the controversial Section 18(Ka) of the new Bank Resolution Act, 2026, which allows previous shareholders to regain ownership of banks placed under resolution.

The previous owners, led by former chairman Major Md Rezaul Haque (retd), applied to the Bangladesh Bank governor on Monday citing the new provision.

Rezaul submitted the application on behalf of the last board of directors, which remained in office until October 30, 2017, when the controversial S Alam Group took control of the bank and retained it until August 2024.

The interim government had brought five struggling banks, including Social Islami Bank, under resolution and merged them into Sammilito Islami Bank due to severe crisis and anomalies at these institutions.

The Bank Resolution Act, 2026, passed by parliament recently, has drawn sharp criticism from economists and civil society members.

Experts warned that Section 18(Ka) creates fresh opportunities for those who looted the banking sector to return to ownership.

They said the provision allows previous shareholders to regain control by paying a small amount of money.

The former chairman submitted a strategic roadmap for the bank’s recovery, which includes strengthening deposits, improving asset quality, and reducing non-performing investments by 25 per cent by December 2026.

He also requested eight years, including a two-year grace period, for repayment of approximately Tk 11,000 crore owed to Bangladesh Bank.

The application stated that the past board members meet the central bank’s ‘fit and proper’ criteria and possess proven experience in banking governance. They have expressed willingness to reassume responsibilities under full regulatory supervision.