Islami Bank Bangladesh plans to sell the S Alam Group’s shares to recover Tk 10,000 crore of unpaid dues, a portion of the Tk 80,000 crore loans the conglomerate took since 2015. The bank faces a Tk 20,000 crore gap between investments and deposits caused by unpaid letters of credit linked to S Alam. With approval required from Bangladesh Bank and the Securities and Exchange Commission, the bank aims to address this deficit by selling S Alam’s shares, valued at Tk 10,000 crore in market terms.
The central bank emphasized taking legal action against individuals rather than shutting down large corporations like S Alam and Beximco. Islami Bank intends to suspend new lending, rebuild relationships with foreign investors by January, and recover deposit flow. Allegations reveal S Alam used shadow companies to acquire a controlling stake in the bank post-2015, resulting in significant financial instability and regulatory violations.
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