The name of the new bank formed by merging five struggling Sharia-based private banks is expected to be United Islamic Bank, according to sources involved in the merger process. The decision comes after most members of the bank merger task force supported this name.
The proposed merger will include Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank, and Global Islami Bank. The initiative is part of the government’s efforts to stabilize the banking sector, which has been facing serious challenges due to mismanagement and financial irregularities in several private banks.
Approval from Finance Ministry Awaited: Bangladesh Bank Governor Dr. Ahsan H. Mansur is expected to send a formal letter to the Finance Ministry in the coming days seeking approval to commence the merger process. Once approved, the formal steps for creating the new government-owned bank will begin.
A draft of the letter was prepared on Wednesday evening and is scheduled to be sent to the ministry next Sunday. Task force members emphasized that the merger process should move swiftly to provide relief to depositors and prevent further complications. Other Proposed Names Considered: During discussions, other names such as Al-Amana Islami Bank, Al-Ihsan Islami Bank, and Al-Falah Islami Bank were proposed. However, most members favored United Islamic Bank, citing its simplicity, marketability, and alignment with Islamic banking principles. 
First Security Islami Bank Chairman Mohammad Abdul Mannan stated, “The merger process should be expedited. This will give relief to common people. If delayed, the situation may worsen.” He also noted that while the Islamic name was acceptable, a secular name might have faced objections from stakeholders.
Government Role and Responsibilities: A task force member, speaking on condition of anonymity, explained that since the new bank will be government-owned, the Finance Ministry is responsible for preparing its constitution and memorandum of association. The task force has submitted a draft and is awaiting ministry approval to proceed.
The merger is seen as part of a broader strategy to strengthen the banking sector by consolidating weak Islamic banks and creating a more stable financial institution.
Background of the Merged Banks: The five banks involved in the merger have faced ongoing financial and legal challenges, including loan defaults, regulatory violations, and governance issues. The merger is intended to consolidate resources, stabilize operations, and restore depositor confidence. By merging these banks, the government aims to create a stronger entity capable of supporting Sharia-compliant banking while reducing systemic risks in the sector. 
Importance of the Name: The choice of United Islamic Bank is considered significant for branding and public perception. As Mannan noted, the Islamic identity of the bank is essential for marketing and maintaining trust among depositors, especially in a sector sensitive to religious and ethical banking practices.
Next Steps: Once the Finance Ministry approves the draft, Bangladesh Bank will initiate the formal merger process. The new bank is expected to operate under government ownership, ensuring enhanced oversight, transparency, and stability. Observers say that a quick and transparent merger could serve as a model for addressing financial instability in other struggling private banks, while also reassuring depositors and investors of the government’s commitment to a strong banking system.