Compensation for affected Islami bank shareholders under review

Finance Adviser Dr Salehuddin Ahmed has said arrangements will be made to compensate shareholders affected by the merger of five Islamic banks, noting that the process is complex and will have to be implemented in phases following careful financial assessment.

He made the remarks while responding to journalists after a meeting of the Advisory Council Committee on Government Procurement at the Secretariat on Tuesday (February 10).

When journalists referred to his earlier statement that general shareholders affected by the merger would be compensated, the finance adviser said, “Yes, I said that. Now we will consider it. The governor has given his opinion in his own way. However, we have said that all depositors—those who have money deposited—will definitely get their money back. Why was Tk 42,000 crore given? The second issue is the shareholders.”

He said the issue of shareholders is technical in nature, as in most cases the banks’ net asset value has turned negative, making compensation a complicated matter.

“Technical experts say shareholders bought the shares and are the owners—so why should compensation be paid to them? Still, I said that perhaps they bought the shares based on market signals. Let us see how much can be done,” he added.

The finance adviser said work is underway to determine how compensation can be provided and that the next finance minister will take steps in this regard. He also said that when a bank’s financial condition becomes negative, it is not reasonable to place the entire burden solely on shareholders.