Islami Bank’s statement to the report

Logo of Islami Bank Bangladesh Limited

Islami Bank has issued a statement, signed by the bank’s senior vice president Nazrul Islam, regarding a report ‘Nasty November, for Islami Bank’ published in Prothom Alo on Thursday.

In the rejoinder the bank said, “The information published in the daily Prothom Alo on 24 November, 2022 regarding the investment of Islami Bank Bangladesh Limited in eight companies including Shimul Enterprises, an associated concern of Nabil Group was not presented properly.

“Nabil Group has been operating its business activities for 18 years with reputation and has become a large business conglomerate of 17 companies. This group has immense contribution to economy of Bangladesh in agro-industry, consumer goods production and marketing. Besides, it is working as one of the largest suppliers of rice, dal, wheat, sugar and edible oil in Bangladesh.

“It has created employment for about 15,000 people. Apart from this, Anwara Trade International and other business institutions that have been alluded in the report have also been financed following proper banking norms and regulations. The report mentions that the owner of an establishment is Miftah Uddin from Banshkhali of Chattogram, which is not correct.

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“Recently Islami Bank has increased its investment for daily essential food items in order to ensure adequate supply throughout the country. In addition, recently due to increase in import requirement of essential commodities and dollar rate volatility and expansion of the business, they have been given investment through proper valuation and taking adequate collateral following bank’s rules.”

It further said, “The institutions maintain a praiseworthy business relationship with Islami Bank. Not a single deal of those institutions became overdue or classified. Islami Bank disbursed investment to the said institutions following the Bank’s investment policy and regulatory guidelines along with justification of business establishment, requirement of working capital, business skills, and experience of the entrepreneur and supply chain management.

“In case of investment under Murabaha TR mode, proper documentation of buying and selling along with Shari’ah compliances have been observed. This invested money is being used in their business activities and we strongly believe that the bank will get back the money in due time.”

Correspondent’s response

Though Nabil Group has been doing business for long, not all the loan receiving organisations, were found at the addresses provided in the documents. Among those organisations are -- Marts Business Limited, International Product Palace and so on.

At the same time, there was no explanation either regarding the speed at which financing was completed. Besides, the report mentioned that there was no scope of being loan defaulter immediately as there have been an one-year grace period for the loans. All the information have been explained properly in the report.