The Bangladesh Bank is investigating reported irregularities in releasing loans to eight organisations including Nabil Group.
As part of it, the central bank has given an order to halt loans in the name of these organisations until further notice.
A team of the central bank has visited the bank and sought explanation of irregularities of these loans. The team also collected documents in this regard.
On Sunday, a government high-up gave directives for providing the real picture of several banks, including Islami Bank. Afterward, the central bank moved to investigate the reported irregularities in disbursing loans from the Islami Bank. Moreover, some officials of the private organisations have held meetings with Islami Bank and Bangladesh Bank.
However, Bangladesh Bank is not formally giving any statement over the irregularities in loan disbursement from the Islami Bank.
Even spokesperson of the regulatory body declined to make any comment over the matter.
On 24 November, a report was published titled 'Nasty November' for Islami Bank' in Prothom Alo. According to the report, an unscrupulous gang has withdrawn around Tk 70 billion through various ways using the names of 8 companies. Of the amount, a whopping Tk 24.9 billion was withdrawn only in the first seventeen days of this month (1-17 November). Due to this, the officials of the bank termed the month a ‘nasty November’.
Out of the total loans taken out in the name of those eight organisations, which included Nabil Group, Tk 24.6 billion was taken from the Islami Bank from 1-17 November.
In their explanation, Islami Bank said, “To ensure sufficient supply of essential food products in the country, Islami Bank has recently increased its loan allocation on such products. Moreover, the loans were sanctioned only after a proper assessment of the increase in imports, the rise of dollar prices and the business expansion of those organisations and adequate collateral was ensured and the regulations of the bank were followed.”
After the report was published last Thursday, Bangladesh Bank officials uncovered the loan sanctioned to Nabil Group on December of 2021.
According to Bangladesh Bank, till 2021, the different companies of the group had taken out nearly Tk 300 billion in loans. The central bank officials decided to further investigate the matter after the astronomical increase in the amount of loan in a year.
As part of the investigation, a three-member investigation group paid a visit to Islami Bank chief's office on Monday. Later, the central bank ordered them to suspend the loan benefits of those eight companies.
The central bank officials are also trying to find out which officials approved the loans and the loan benefits. The representative team is also gathering information on the massive loan benefits that have been sanctioned by the bank since the change in ownership.
Meanwhile, Bangladesh Bank governor Abdur Rauf Talukder went to the prime minister’s office on Monday noon for an unscheduled meeting. After returning from the PMO, the governor summoned Islami Bank’s managing director Mohammed Monirul Moula to the central bank.
When asked about the visit, Monirul told Prothom Alo at 7:45pm on Monday, “The central bank has asked for an explanation for the loans sanctioned to the eight organisations including Nabil Group. We will send our explanation.”