Logo of Bangladesh Bank
Logo of Bangladesh Bank

Five Shariah-based banks

Supervision of loan over Tk 100m begins

Five Shariah-based banks in the Bangladesh, which are in the limelight due to the loan scam, have been asked to submit information on the distribution and recovery of loans of over Tk 100 million (Tk 10 crore) every day.

The Bangladesh Bank (BB) has taken this decision as part of its decision to supervise the banks closely.

The five banks are -- Islami Bank Bangladesh Limited (IBBL), Social Islami Bank Limited (SIBL), First Security Islami Bank Limited (FSIBL), Global Islami Bank Limited and Union Bank.

All of the five banks are owned by a Chattogram-based group.

Due to the loan scams, the central bank has also appointed an observer at IBBL and FSIBL. The central found the incidents of huge loan scam in other three banks earlier.

Speaking to Prothom Alo about this, the Bangladesh Bank spokesperson Mezbaul Haque said, “Such information is sought regularly as part of the supervision process. But now the supervision is being enhanced due to various discussions. This is part of routine work of the central bank.”

The Bangladesh Bank in its letter sent to the five banks said they have to submit information of distribution and recollection of loan of over Tk 100 million (10 crore) every day.

The letter also sought the information of periodic, current and demand loans separately. The slab-based information has to be provided in a format the central bank has fixed. The slabs are 100-200 million, 200-500 million, 500 million to 1 billion, 1-5 billion and over 5 billion.

Speaking to Prothom Alo about this, Islami Bank managing director Mohammed Monirul Moula said on Thursday night, “I have heard about seeking such information.”

Islami Bank Bangladesh Limited is the largest bank in the country in terms of deposit, loan and wealth. The deposit of the bank on Wednesday was Tk 1.4 trillion.

Speaking about the bank’s current situation, Mohammed Monirul Moula said, “The situation has become fairly normal now. The amount of money being withdrawn is less than the money being deposited. Tk 20 billion (2000 crore) has been reimbursed. Hopefully we will have a good amount of collection in December. It will be possible to get out of the situation if we get help from everyone.”

An unscrupulous gang has withdrawn around Tk 70 billion through various ways using the names of eight companies. Of the amount, a whopping Tk 24.6 billion was withdrawn between 1 and 17 November. In the same way, the companies withdrew Tk 23.2 billion from Social Islami Bank Limited and First Security Islami Bank Limited.

Besides, an inspection of the central bank revealed that 95 per cent loan of Union Bank and 23 per cent loan of SIBL is liable to default.

In the same way, there was a huge amount of loan scam at Global Islami Bank. Most of the loan of the bank is in risk of being default. The central bank also found evidence of large scale irregularities at Gulshan, Dhaka and Khatunganj, Chattogram branches.

In this situation, the Islami banks have been facing liquidity crisis and stopped distributing loans. Following this, Bangladesh Bank has taken a special measure to face the situation.