A writ has been filed challenging the legality of the decision to merge five troubled private banks.

Barrister Mahsib Hossain filed the writ on behalf of an ordinary investor named Shahidul Islam on Tuesday (November 18).

The Governor and Finance Secretary of Bangladesh Bank, along with other relevant parties, have been named as respondents in the writ petition.

On October 9, the Advisory Council of the interim government approved a proposal to merge five troubled private banks. The banks are First Security Islami Bank, Global Islami Bank, Union Bank, Exim Bank and Social Islami Bank. A new Sharia-based bank will be formed with these five banks.

Two names have been proposed for the new bank - 'United Islamic Bank' and 'Sammilit Islamic Bank'. The bank will be run commercially and professionally.

The government has stated that no one will lose their jobs and no depositor will lose their deposits as a result of the merger of the banks.

It is learnt that initially the authorized capital of the new bank will be Tk 40,000 crore and the paid-up capital will be Tk 35,000 crore. The new bank will operate by taking over all the liabilities and assets of the five banks. The government will provide Tk 20,000 crore of the paid-up capital. Out of this, Tk 10,000 crore will be provided in cash, and the remaining Tk 10,000 crore will be raised through the issuance of Sukuk bonds.