Bangladesh's ICB Islamic Bank Ltd. proposed to restructure its repayment program for depositors of its predecessor bank, The Daily Star reported March 12, citing central bank officials.
The lender has proposed to the Bangladesh Bank to convert the remaining 4.44 billion taka worth of frozen deposits into a Mudarabah term deposit that will pay out interest to the clients of Oriental Bank every six months.
ICB Islamic was formed in 2008 following the central bank's move in 2006 to dissolve Oriental Bank's board of directors due to corruption at the bank. The Bangladesh Bank then conducted a tender to sell a majority of the bank's shares in 2007, which was won by Switzerland's ICB Financial Group Holdings AG.
The bank has repaid 15.21 billion taka of Oriental Bank's deposits of 19.46 billion taka to clients, and was supposed to return the remaining 4.44 billion taka in phases by November 2021. It missed a deadline to repay an installment due in November 2017 due to a liquidity crunch, according to an official of the Bangladesh Bank.
As of March 9, US$1 was equivalent to 83.01 Bangladeshi taka.
