S Alam Group Took Over Half of Islami Bank's Loans

S Alam Group has taken more than half of the total loans disbursed by Islami Bank, posing a significant recovery challenge, said the bank's newly appointed chairman, Md. Obayed Ullah Al Masud.

Speaking to reporters after a meeting with Bangladesh Bank (BB) Governor Dr. Ahsan H. Mansur on Thursday, Al Masud revealed that Islami Bank's total loan disbursement stands at around Tk 1.75 lakh crore, with S Alam Group alone responsible for over Tk 87,500 crore.

However, he noted that this is not the final figure and that it will take another week to gather complete information.

"The group devalued the assets and took out massive loans. We are currently reassessing the assets, and a letter has been sent to the Law Ministry to trace assets outside the collateral. The collaterals alone will not cover the debt," said the Islami Bank chairman.

He also mentioned that when the new board took over, there was a Tk 2,300 crore shortfall, which has since decreased to Tk 2,000 crore. He expressed optimism that the bank will return to a positive trend within this year, adding, "Many customers will no longer face withdrawal issues as deposits have outpaced withdrawals over the past week."

When asked about actions against bank officials who aided S Alam Group, Al Masud said, "We are not rushing to remove staff at the lower levels right now to avoid destabilizing the bank. However, some senior officials have already been removed, and more will follow gradually. Action will be taken according to the rules, and no one will be spared."

The new chairman outlined a roadmap for the bank's recovery, structured in three phases. The first phase involves immediate actions through the end of this year, the second phase designates 2025-26 as the turnaround years, and the third phase from 2027-29 will be focused on a leap forward for the bank.