Bangladesh, Oct. 7 -- Sammilito Islami Bank began operating as a single entity in August and has successfully withstood withdrawal pressure, but rationalising its workforce and branch network and reducing costs remain key challenges if the merger is to succeed.

EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank have been merged into Sammilito Islami Bank in an effort to improve operational efficiency, reduce costs, strengthen governance and accelerate loan recovery.

Economists and banking experts say the merged entity will have to consolidate branches, cut the combined workforce of the five banks, integrate technology systems and streamline administrative functions to realise the potential bene...