Bangladesh Bank reportedly allowed Social Islami Bank (SIBL), controlled by the S Alam Group, to finalize its 2023 annual report with misleading data. The bank’s actual defaulted debt is Tk 9,569 crore, but only Tk 1,716 crore was reported, concealing Tk 7,853 crore. Additionally, a security reserve of Tk 9,281 crore was required, but only Tk 1,153 crore was set aside, hiding a provision of Tk 8,128 crore. Despite these discrepancies, the bank declared a 10% dividend for 2023, with 5% in cash and 5% in stock. Allegations suggest that recent officials pressured staff to underreport defaults and provisions to facilitate the dividend. An inspection revealed defaulted loans totaling Tk 9,569 crore, with Tk 7,419 crore in required provisions. Protests erupted against Bangladesh Bank’s officials, accusing them of corruption and mismanagement. As a result, four deputy governors were forced to leave but have been asked to return pending the appointment of new officials.
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