Islami Bank Bangladesh PLC (IBB) has demanded the immediate recovery of approximately Tk 10,000 crore stuck with five other Shariah-based banks linked with S Alam Group.
The country’s largest private lender has also sought the central bank’s mediation to recover outstanding funds from the state-owned Janata Bank and S. Alam Group.
The issues were raised by Islami Bank Chairman Professor M. Zubaidur Rahman during a high-level meeting with Bangladesh Bank Governor Mostaqur Rahman at the central bank headquarters on Tuesday. The Islami Bank's board members, managing director, and senior officials were present at the meeting.
According to meeting sources, the Chairman informed the Governor that a substantial amount of the bank's liquidity—roughly Tk 10,000 crore—is currently held up in five Islamic banks. Furthermore, the bank claimed it is owed nearly Tk 1,000 crore from the central bank in the form of unpaid remittance incentives.
During the discussion, the IBB management sought the central bank's assistance in recovering large-scale loans and requested a waiver on provisioning under special conditions. The bank also sought the Governor’s guidance on maintaining business relations with major industrial groups moving forward.
Governor Mostaqur Rahman assured the delegation that the issues would be considered with gravity. "The matters will be reviewed, and necessary decisions will be communicated shortly," the Governor reportedly told the meeting.
A senior official of Bangladesh Bank noted that the Governor inquired about the current operational hurdles facing Islami Bank and instructed relevant departments to assess the situation and determine the next course of action.
The meeting comes in the wake of recent change in the board of Islami Bank . On February 17, the central bank removed board member Md. Abdul Jalil replaced another banker SM Abdul Hamid in his place.
Islami Bank fell under the control of the S Alam Group from 2017 until the fall of the Awami League government in August 2024. During this period, allegations surfaced that approximately Tk 1.20 lakh crore was withdrawn from the bank through various names and shadow entities.
Additionally, the irregular recruitment of nearly 10,000 officials reportedly pushed the bank into a deep crisis.
Following the formation of the interim government in 2024, the bank's board was restructured, leading to the departure of several top executives from the country.
A recent report submitted by the Bangladesh Bank to the Anti-Corruption Commission (ACC) revealed that the S Alam Group took nearly Tk 1.90 lakh crore in loans from eight banks under its direct or indirect control. Of this, the Bangladesh Financial Intelligence Unit (BFIU) found that approximately Tk 93,364 crore was laundered through fraudulent paper companies, with over Tk 1.05 lakh crore originating from Islami Bank alone.
This was the second formal meeting between the restructured IBB board and Governor Mostaqur Rahman.
In their previous session, the Governor acknowledged that while the bank was once one of the nation's strongest financial institutions, a significant governance deficit had emerged in recent years.
He (Governor) reiterated the central bank's commitment to providing the necessary support to stabilize the institution.