Sonali Bank is facing significant repayment challenges with banks controlled by the S Alam Group, particularly Islami Bank Bangladesh and National Bank. Islami Bank borrowed Tk1,000 crore from Sonali Bank at an 11.5% interest rate for a 14-day period to address a cash crisis but still owes Tk870 crore after 248 days, with the loan being overdue 16 times and repeatedly renewed. Additionally, Sonali Bank has Tk1,070 crore invested in Islami Bank, including fund placements, while Tk130 crore remains unpaid by National Bank from another loan. Due to these repayment issues, Sonali Bank has rejected a Tk1,000 crore loan request from Social Islami Bank, also controlled by the S Alam Group, unless backed by a guarantee from another reliable bank. The bank’s board has expressed concerns over the risky nature of such investments without guarantees, citing ongoing liquidity issues and the inability of Islamic banks to repay principal amounts fully, leading to repeated loan renewals with only minimal principal and interest payments.
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