Janata Bank has extended a Tk 10,000 crore loan to S Alam Group, significantly exceeding the legal limit of 25% of the bank’s capital. This loan represents 420% of the bank’s total capital, which is Tk 2,314 crore. The bank is allowed to lend a maximum of Tk 578 crore to a single group, but S Alam Group’s loans amount to Tk 9,711 crore, including Tk 8,896 crore in funded loans and Tk 816 crore in non-funded loans. The loan has been repeatedly rescheduled with special approvals from the central bank, leading to concerns about its legality. The central bank’s recent review highlighted that if the loan renewal is approved, the total benefit would reach Tk 10,449 crore, or 451.57% of the bank’s capital. The bank has faced difficulties collecting the loan, and with the recent political upheaval and resignation of key officials, further approvals are uncertain. The loan renewal decision was made on June 25, with a proposal to extend the working capital loan limit by Tk 3,900 crore.
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