Shahjalal Islami Bank Limited in Bangladesh is facing complications after taking over a loan of Dhaly Construction Ltd, from another bank and granting additional loans to it again by violating banking regulations. . The bank is currently owed Tk408 crore by Dhaly Construction, and recovering the amount is deemed challenging. The Central bank report highlighted violations of the bank’s board directives, lack of information regarding work orders and project progress, and insufficient collateral against the loans. The loans were renewed multiple times, and the company cashed bills of work orders through other banks, making recovery difficult. The bank officials did not provide specific comments or information regarding the violations. Dhaly Construction cited challenges due to the pandemic and rising construction material costs but expressed intent to repay the loans. The central bank report also holds various officials and the board of directors responsible for the irregularities.
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