United News of Bangladesh

Union Bank PLC, a listed entity reportedly affected by financial irregularities linked to the S. Alam Group, recorded a staggering per-share loss of nearly Tk 249 in 2024. The summary of the bank’s audited financial report for 2024 was published on Tuesday (November 18) through the Dhaka Stock Exchange (DSE). This massive loss translates to a net deficit of approximately Tk 26,000 crore, according to the audited financial statements. The figure represents an 88-fold increase in the bank’s net loss compared to the previous year, when it reported a net loss of over Tk 292 crore. A review of the published summary highlights the severity of the bank’s financial condition. In response to the crisis affecting Union Bank and four other distressed lenders, Bangladesh Bank (BB) has decided to merge five Islamic banks into a single entity, to be named the ‘Combined Islamic Bank’. Islami Bank customers organise human chain against S. Alam era appointees The five banks involved in the merger are: ·         Union Bank ·         First Security Islami Bank ·         Social Islami Bank (SIBL) ·         EXIM Bank ·         Global Islami Bank According to information from Bangladesh Bank, the 'Combined Islamic Bank' will have a total capital base of Tk 35,000 crore. The government will provide Tk 20,000 crore of this capital, while the remaining Tk 15,000 crore will be raised by converting depositors’ funds into shares of the new bank. The central bank has appointed Nazma Mobarek, Secretary of the Financial Institutions Division, as chairperson of the newly-merged entity. Read more: Capital flight forces merger of 5 Shariah-based banks: BB Governor

Trading of shares of five Islamic banks has been suspended at both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) as part of their ongoing merger process. In separate notices issued on Thursday (6th November 2025), the two bourses announced that trading in the shares of First Security Islami Bank, Social Islami Bank (SIBL), EXIM Bank, Global Islami Bank, and Union Bank will remain suspended until further notice. The suspension follows the banks being declared non-operational under Section 15 of the Bank Resolution Ordinance, 2025, which took effect on November 5. Stocks tumble at opening as DSE, CSE see sharp decline According to the exchanges, Bangladesh Bank, in a letter issued on the same day, instructed that the five banks be brought under the provisions of the Bank Resolution Ordinance, 2025, and subsequently dissolved their respective boards of directors. Bangladesh Bank Governor Dr Ahsan H Mansur said at a press conference on Wednesday that the shareholders’ equity value of these banks had fallen below zero. “The value of their shares is effectively zero, and no compensation will be provided to anyone,” he stated. Depositors of Bangladesh’s troubled banks still anxious despite security assurances