Dhaka, May 2 -- The fate of the merger of five struggling Islamic banks to form the 'Sammilito Islamic Bank PLC' hangs in the balance, with increasing signs pointing to its potential dissolution less than five months into its journey.

Sources at Bangladesh Bank (BB) confirm that at least one partner bank has formally applied to exit the merged entity, while another is reportedly considering a similar move, casting a shadow over the future of what was initially touted as a critical initiative to stabilize the country's troubled Islamic banking sector.

The merger, finalized on December 21 last year, brought together Exim Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank Limited (SIBL).

The primary o...