Bangladesh Bank governor Dr Ahsan H Mansur said that due to major financial losses in some Islamic banks in FY25, it was not possible to pay any profit on deposits as per Shariah principles.
However, the principal of the depositors is being fully refunded and the profit that was shown on paper until 2023 is also being paid.
He said these while talking to the media at the Bangladesh Bank conference room on Thursday (January 15).
The governor also said: “The decision we have taken is completely Shariah-based. The Shariah Council has clearly stated that if there is a major loss in real terms, then no profit can be paid at that time. The banks concerned have faced huge losses in FY25. That is why it was not possible to pay profit at that time.”
He said that the media has mainly reported only the part ‘no profit was given in 2024’. But the real picture is that the government and Bangladesh Bank have made arrangements to return the principal to the depositors in full.
In addition, the profit (investment return) that was shown until 2023 is also being paid.
Ahsan H Mansur also said: “If someone has deposited 10 years ago, then he is getting his money back along with the profit for the entire period until 2023. Even the periods when there was no profit in reality, but it was shown on paper, are also being given in consideration of public interest.”
He further said that the real financial picture of the banks has come to light through the revised accounts for FY26. It has been seen that there were already major losses in these institutions.
The non-performing loan ratio (NPL) in some banks had reached 97%-98%.
He also mentioned that the previous management authority had embezzled a large part of the customer deposits.
The governor said: “Despite such a big crisis, the government and Bangladesh Bank are returning 100% of the principal to depositors. This is an exceptional initiative. However, according to Shariah principles, there is no opportunity to give profit or profit at the time of actual loss.”
Referring to the recent commotion in some branches, the governor said: “Some miscreants tried to create chaos in some branches of Union Bank. However, no major damage was caused. We want ordinary depositors not to be involved in such unwanted incidents in any way.”
He assured that there are no restrictions on the new deposits being deposited after the new management takes charge and from January 1, 2026. Depositors can withdraw money as they wish and market-based returns are being given against these deposits.
“Bangladesh Bank and the government have given top priority to protecting the interests of the people from the beginning. Our efforts to ensure the protection of depositors will continue,” the governor added.
