Bizdata Insights Main Logo

BizData Insights

Saudi Firm Divests 99% Ownership

Industry: Bank, Financial
Company: Arab sas Travel & Tourist Agency, Islami Bank Bangladesh Limited (IBBL)
Company Intelligence Tag: Business Insights

Arabsas Travel & Tourist Agency, a Saudi Arabian entity, has initiated the divestment of its ownership and shares from Islami Bank Bangladesh Ltd. This decision comes after assuming management and ownership from Islami Bank Bangladesh PCL. The move, confirmed by the bank’s Managing Director highlights the Saudi company’s aim to reap profits. The bank’s history saw a shift in ownership from domestic and foreign shareholders to the S. Alam Group in January 2017. However, recent reports by Bangladesh Bank indicate the bank’s struggle with liquidity due to irregularities, affecting its compliance with cash reserve requirements. As a consequence, the central bank occasionally facilitates regular transactions through cash deposits and secures fund transfers.

On 5 July, Islami Bank notified the Dhaka Stock Exchange of Arabsas Travel’s departure from a directorial position. The Saudi company’s substantial ownership, representing 99 percent of shares, is being sold to pursue lucrative gains. Observers note that this development underscores foreign investors’ wavering confidence in the bank, raising concerns for the country’s investment climate. Despite its 40-year association, Arabsas is relinquishing shares, marking a significant shift in its stance. The bank’s shares currently trade at a constant floor price of BDT 32.60, reflecting stability but also hinting at challenges in attracting foreign investments. In its journey since 1983, Islami Bank’s management has changed hands, with recent irregularities in loans surfacing, albeit without punitive actions. To maintain operations, Bangladesh Bank has intervened by injecting funds.

Source for more details:

Related News

MTB Seeks Bangladesh Bank Approval for Land Acquisition

June 13, 2024

Mutual Trust Bank (MTB)  plans to acquire three bighas (60 khata) of land in Beraid, Dhaka, for constructing its own head office. The bank has applied to Bangladesh Bank for necessary approvals. Financially, MTB reported a consolidated earnings per share (EPS) of Tk 2.91 for the fiscal year 2023, marking a 20.75% increase from the previous year's revised figure of Tk 2.41. The bank's consolidated net asset value per share (NAVPS) stood at Tk 24.52 as of December 31, 2023, up from Tk 21.70 (revalued) in the prior year. MTB distributed a 10% cash dividend for the year, continuing its dividend payout tradition.

NRBC Bank’s AGM Deferred by High Court Decision

June 13, 2024

The High Court has postponed NRBC Bank's annual general meeting following a writ petition alleging irregularities. The court also instructed the Bangladesh Securities Exchange Commission (BSEC) to explain why its senior officials should not oversee the AGM to ensure transparency.

Number of Tk1 Crore Bank Accounts Decreases by 1,018

June 13, 2024

The number of bank accounts with at least Tk1 crore dropped by 1,018 in the first quarter of 2024, driven by high inflation and the dollar crisis, which increased production costs and reduced business deposits. According to Bangladesh Bank, deposits in these accounts decreased by Tk1,316 crore to Tk740,150 crore by the end of March.

Bangladesh Bank Allows Officials to Attend Foreign Business Meetings

June 13, 2024

The Bangladesh Bank has eased travel restrictions for bank officials, allowing them to attend crucial business meetings abroad with foreign banks, provided they secure permission from their bank authorities. This marks a slight relaxation of the 2022 policy aimed at reducing dollar spending, which had banned bank-funded foreign travel for training, seminars, workshops, and study tours, while permitting travel for medical treatment, hajj, and fully sponsored professional engagements by foreign agencies.

Islamic Banks Issue Loans 9.5 Times Greater Than Monthly Deposits

June 13, 2024

Bangladesh's fully Shariah-compliant banks disbursed loans amounting to 9.5 times the deposits received in a single month, triggering liquidity issues, as per a Bangladesh Bank report. The ten Islamic banks, including Islami Bank Bangladesh and Social Islami Bank Limited, saw a deposit increase of Tk 449 crore in March, while loans surged by Tk 4,302 crore.

Prime Bank Forms Climate Resilience Partnership

June 13, 2024

Prime Bank PLC has signed a memorandum of understanding (MoU) with the British Asian Trust and SAJIDA Foundation at its Gulshan corporate office. This partnership allows Prime Bank to provide funding to support agricultural innovations in Bangladesh that enhance climate resilience.

Related News

MTB Seeks Bangladesh Bank Approval for Land Acquisition

June 13, 2024

Mutual Trust Bank (MTB)  plans to acquire three bighas (60 khata) of land in Beraid, Dhaka, for constructing its own head office. The bank has applied to Bangladesh Bank for necessary approvals. Financially, MTB reported a consolidated earnings per share (EPS) of Tk 2.91 for the fiscal year 2023, marking a 20.75% increase from the previous year's revised figure of Tk 2.41. The bank's consolidated net asset value per share (NAVPS) stood at Tk 24.52 as of December 31, 2023, up from Tk 21.70 (revalued) in the prior year. MTB distributed a 10% cash dividend for the year, continuing its dividend payout tradition.

NRBC Bank’s AGM Deferred by High Court Decision

June 13, 2024

The High Court has postponed NRBC Bank's annual general meeting following a writ petition alleging irregularities. The court also instructed the Bangladesh Securities Exchange Commission (BSEC) to explain why its senior officials should not oversee the AGM to ensure transparency.

Number of Tk1 Crore Bank Accounts Decreases by 1,018

June 13, 2024

The number of bank accounts with at least Tk1 crore dropped by 1,018 in the first quarter of 2024, driven by high inflation and the dollar crisis, which increased production costs and reduced business deposits. According to Bangladesh Bank, deposits in these accounts decreased by Tk1,316 crore to Tk740,150 crore by the end of March.

Bangladesh Bank Allows Officials to Attend Foreign Business Meetings

June 13, 2024

The Bangladesh Bank has eased travel restrictions for bank officials, allowing them to attend crucial business meetings abroad with foreign banks, provided they secure permission from their bank authorities. This marks a slight relaxation of the 2022 policy aimed at reducing dollar spending, which had banned bank-funded foreign travel for training, seminars, workshops, and study tours, while permitting travel for medical treatment, hajj, and fully sponsored professional engagements by foreign agencies.

Islamic Banks Issue Loans 9.5 Times Greater Than Monthly Deposits

June 13, 2024

Bangladesh's fully Shariah-compliant banks disbursed loans amounting to 9.5 times the deposits received in a single month, triggering liquidity issues, as per a Bangladesh Bank report. The ten Islamic banks, including Islami Bank Bangladesh and Social Islami Bank Limited, saw a deposit increase of Tk 449 crore in March, while loans surged by Tk 4,302 crore.

Prime Bank Forms Climate Resilience Partnership

June 13, 2024

Prime Bank PLC has signed a memorandum of understanding (MoU) with the British Asian Trust and SAJIDA Foundation at its Gulshan corporate office. This partnership allows Prime Bank to provide funding to support agricultural innovations in Bangladesh that enhance climate resilience.

BUSINESSMONITOR

Connect with


Dont Have Account? Please register Here