S Alam Group has reportedly exploited six banks, including Islami Bank, Social Islami Bank, and Global Islami Bank, resulting in significant financial mismanagement. Over the past year and a half, these banks have failed to deposit required funds into the Central Bank due to smuggled loans not being repaid. The former central bank governor allegedly facilitated this by extending special privileges to these banks, which are now being revoked following a political change. As of August 7, 2024, banks controlled by S Alam Group face severe liquidity issues, with Islami Bank and Social Islami Bank each showing deficits of Tk 2,877 crore and Tk 2,850 crore respectively. S Alam Group’s influence has also led to significant irregularities, including concealed defaulted loans, and several banks now face restricted operations and liquidity crises. Commerce Bank has a deficit of Tk 503 crore and is struggling with a liquidity crisis. The current situation underscores the urgent need for an independent audit and regulatory oversight to address the financial instability and corruption linked to these banks.
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