Islami Bank Bangladesh is facing uncertainty over recovering Tk 8,279 crore provided as liquidity support to four banks—First Security Islami Bank, Union Bank, Social Islami Bank, and Global Islami Bank—and one non-bank financial institution, Aviva Finance.
These entities, controlled by the Chattogram-based S Alam Group, received funds from Islami Bank during liquidity shortages. The breakdown of support includes Tk 3,043 crore to First Security Islami Bank, Tk 2,982 crore to Union Bank, Tk 1,017 crore to Social Islami Bank, Tk 547 crore to Global Islami Bank, and Tk 690 crore to Aviva Finance.
As of June, S Alam Group and its affiliates borrowed Tk 74,900 crore from Islami Bank, representing 47% of its total outstanding loans. Following a recent board reconstitution by the Bangladesh Bank, S Alam Group’s control over Islami Bank ended on August 22. The central bank has lifted all restrictions on the bank, assuring depositors of fund protection.
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