Islamic Bank Focuses on Shariah Compliance

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. 

National Bank Limited launched the 'Nischinto Oboshor' savings scheme on September 5, 2024. The event was attended by Managing Director and CEO Touhidul Alam Khan, along with Deputy Managing Directors Sheikh Akhter Uddin Ahmed, Imran Ahmed, and Md. Abdul Matin. The scheme offers attractive pension benefits upon maturity for deposits of varying tenures and amounts.

The new board of United Commercial Bank (UCB) has cancelled a Tk 500 million investment plan in a close-ended mutual fund, initially approved by the previous board. The previous board, dominated by the family of former land minister Saifuzzaman Chowdhury, was dissolved by the Bangladesh Bank on August 27. The change followed political shifts after the fall of the Hasina-led government. Following the cancellation, UCB's stock rose 1% to Tk 12.30 per share. UCB reported a profit of Tk 1.27 billion for the first six months of 2024.

The Registrar of Joint Stock Companies & Firms (RJSC) and the Insurance Development & Regulatory Authority (IDRA) have approved the name change of Eastland Insurance Company from "Eastland Insurance Company Limited" to "Eastland Insurance PLC," effective immediately, according to a press release.

Officials from state-owned banks Agrani, Janata, and Sonali are calling for changes to the promotion and placement policy for general managers (GMs) and deputy managing directors (DMDs). In a letter to Finance Adviser Salehuddin Ahmed, signed by nearly 100 officials, they expressed concerns over being sidelined in favor of junior officials from Rupali Bank, who are advancing to higher positions.

S Alam Group has taken over half of the loans disbursed by Islami Bank Bangladesh Ltd (IBBL), as disclosed by the bank's new Chairman, Md Obayed Ullah Al Masud. IBBL's total loans exceeded Tk 1.74 lakh crore by June, with S Alam securing a significant portion using overvalued assets. A reassessment of these assets is ongoing, with further details expected within a week. The bank, which faced a Tk 2,300 crore capital shortfall, has reduced the gap to Tk 2,000 crore and aims for improvement by year-end. A roadmap for recovery and restructuring has been set, with phases running until 2029.