Amid widespread anger, the Bangladesh Bank (BB) has backtracked on its earlier decision that had barred five shariah-based merging banks from providing any profit on savers’ deposits for 2024 and 2025.

Under the BB’s latest instructions, the banks will provide a provisional profit at an annual rate of 4 percent on Mudaraba savings and term deposit accounts for the period from January 1, 2024, to December 28, 2025.

The revised decision will apply only to individual depositors, according to letters sent separately to each of the five banks yesterday.

The BB said the decision was taken to ensure uniformity and transparency in profit distribution.

The development comes just a week after the BB informed these banks that no profit would be considered on deposits for 2024 and 2025. The initial decision sparked anger and protests among savers, disrupting normal operations at some branches.

The five banks—First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank—are in the process of merging into a new state-run financial institution, Sammilito Islami Bank PLC.

The BB said profits already distributed must be recalculated where necessary, and any excess or shortfall should be adjusted accordingly.
For monthly and daily profit-based Mudaraba deposits, banks must ensure that the final profit distribution for 2024 and 2025 does not exceed the approved annual rate of 4 percent.

The central bank also directed the shariah-based lenders to recalculate and adjust profits on all eligible Mudaraba accounts and submit a reconciliation statement to its Banking Regulation and Policy Department within three working days of completing the adjustment.