Depositors to Get Full Amount With Interest: Finance Minister

Depositors of banks burdened by defaulted loans will receive their full deposits along with interest, Finance Minister Amir Khosru Mahmud Chowdhury assured the nation in parliament. The minister acknowledged the distress of depositors unable to access their funds for essential needs, describing the situation as "heartbreaking."

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When banks are looted, where will they go? Some cannot withdraw money for medical treatment and are dying. Looters have fled abroad and are living comfortably.

To stabilize the financial sector, Chowdhury explained that five banks have been merged under the Bank Resolution Act, forming the Consolidated Islami Bank. He also highlighted an increase in the maximum protected deposit amount from Tk 100,000 to Tk 200,000 under the Depositor Protection Act 2026. Depositors of finance companies, previously excluded, are now also being considered.

A special forensic audit is underway to identify individuals responsible for irregular investments in the affected banks. Based on the audit's findings, actions will be taken to recover assets. Civil cases are being initiated, and efforts are in motion to retrieve defaulted loans laundered abroad. Approximately 30 banks have signed non-disclosure agreements to pursue asset recovery, engaging nine international legal firms on a contingency basis. Civil proceedings have commenced against six priority groups, including prominent business entities and individuals.

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I feel deeply troubled. As I have said before, this is a heartbreaking incident. But I assure you, depositors will get their money back with interest, In sha Allah. They just need to be patient.

Responding to concerns about a "haircut" provision, which would reduce deposit values, Chowdhury promised that this measure would be removed. He reiterated his assurance that depositors would get their money back with interest, urging patience as the process unfolds. The minister recognized the urgency faced by depositors, particularly those needing funds for medical treatment.

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A loss-making bank struggles even to return deposits, let alone pay interest. But deposits and interest will be returned. It will just take time. There will be no haircut. That provision will be removed.