S Alam Group took more than half of total loans from Islami Bank: Chairman

S Alam Group alone has taken more than half of the total loans of Islami Bank, recovering which is now the challenge for the bank, said the newly appointed chairman of the bank Md Obayed Ullah Al Masud.

Md Obayed Ullah Al Masud said this to reporters after meeting with Bangladesh Bank (BB) governor Dr Ahsan H Mansur on Thursday, 5 September 2024.

He said the total disbursed loans of Islami Bank stands around Tk 1,750 billion (Tk 1.75 lakh crore). Of which S Alam Group alone took more than half or Tk 875 billion (Tk 87,500 crore). But it is not the final account which needs another week to get the complete information, he added.

“The group depreciated the assets and took out the debt. His assets are already being reassessed. Also, the collaterals against the loan will not be covered. Therefore, a letter has been written to the ministry of law to find out the assets that are outside the collateral,” said the Islami Bank chairman.

He said, when the new board took over, Tk 23 billion (Tk 2,300 crore) was short. It is decreasing every day.

“Till Thursday, it has reduced to Tk 20 billion (Tk 2,000 crore). Hopefully it will return to a positive trend within this year. Many customers will not have the problem of withdrawing money after Thursday. Because the withdrawals are less than the amount deposited in the last week,” he pointed out.

Asked what kind of action is being taken against various officials who have cooperated with S Alam, he said, “We do not want to move the officials down now. For, if you hit the bottom now everything will collapse. Some of the top officials are already being removed. All will be removed gradually. Action will be taken according to rules. No one will be exempted.”

The new chairman of Islami Bank said that a roadmap has been drawn up to turn the bank around. This roadmap is done in three phases.

First, finding out and take various steps from the beginning of the new board till 31 December. Second, the year 2025-26 has been given as the turnaround year. Third, 2027-29 will be the leap forward years, he said.