Protesters lock 5 Islamic bank branches in Ctg over 'haircut' proposal
They gathered at the Agrabad intersection in the morning and later locked five branches of Islamic banks under a combined platform, temporarily halting banking operations in the area.
Protesting customers of Sammilito Islami Bank PLC, the combined entity of five merged Shariah-based banks, briefly locked the gates of five branches in Chattogram's Agrabad today (4 May), demanding the cancellation of a proposed "haircut" on deposits and the return of their savings.
The demonstrators gathered at the Agrabad intersection in the morning before placing symbolic locks on branches of Exim Bank, Union Bank, First Security Islami Bank, Global Islami Bank and Social Islami Bank.
The protest temporarily disrupted banking operations, although services later resumed after the locks were removed in the afternoon.
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Depositors alleged that they have been facing severe difficulties in withdrawing their own money for a long time. Many said they have fallen into financial hardship as they could not access funds when needed.
They added that their demands are simple: cancellation of the "haircut on deposits" and restoration of normal transactions. The protesters also warned of tougher protests if the demands are not met soon.
On Sunday, depositors staged similar demonstrations at branches of Union Bank PLC and First Security Islami Bank in Chattogram's Khatunganj area, demanding the return of their funds and the withdrawal of the haircut proposal.
Speaking to TBS today, Azam Uddin, general secretary of the Chattogram chapter of the Samagra Bangladesh Sammilito Islami Bank Grahak Association, said, "We are protesting for our rightful demands. We locked the gates and left. We do not know how the locks were later opened – whether by the bank authorities or the administration."
Md Borhan Uddin, senior vice-president of Social Islami Bank's Agrabad branch, said the protest was symbolic. "It was part of their [protester's] programme. They handed over the keys to us afterwards, and we resumed normal operations," he said.
Police also confirmed that the situation was under control and that the locks had been removed.
Abul Kalam Azad, president of the association, said customers had been raising their demands peacefully for a long time without a solution. "The demands of 7.5 million customers need to reach the highest levels of government," he said, adding, "We are not seeking any special privileges – only the return of our deposited money and cancellation of the haircut."
What is the 'haircut' proposal?
A "haircut on deposits" refers to a reduction in the value of bank deposits, typically during a banking crisis or debt restructuring process.
In January, the central bank wrote to the five merging banks – First Security Islami, Social Islami, Union, Global Islami and Exim – stating that deposit balances would be recalculated based on their position as of 28 December 2025.
According to the letter, no profit would be considered on deposits for the period from 1 January 2024 to 28 December 2025. The regulator also said a haircut would be applied in line with an approved decision, with final balances determined after the recalculation.
The central bank said the measure follows an international approach used during bank mergers and is being applied in Bangladesh under an ongoing bank resolution framework.
