A writ petition was filed with the High Court yesterday challenging the government's decision to merge five troubled shariah-based commercial banks into a new state-run Islamic lender named Sammilito Islami Bank Limited.

Shahidul Islam, a general investor in the share market, submitted the petition through Barrister Sayed Mahsib Hossain. The banks are First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank and Exim Bank.

The petitioner argued that the merger was approved "without ensuring any protection to the shareholders' interest and without issuing any shares to the existing general shareholders" for the proposed new bank.

The lawyer said the HC may hold a hearing on the petition next week.

On October 9, the government approved the merger of the five shariah-based banks, all listed on the stock exchange.