United News of Bangladesh

Islami Bank Bangladesh PLC is facing a severe financial and managerial crisis due to years of irregular recruitment under S. Alam Group, according to officials. The bank’s management has recently begun efforts to restore order by assessing the competency of thousands of unqualified staff who were reportedly hired without proper procedures. Kamal Uddin Jasim, Additional Managing Director (AMD) of Islami Bank Bangladesh PLC (IBBL), said the bank is incurring a staggering annual loss of over Tk1500 crore due to the unauthorised, large-scale hiring of more than 8,000 unqualified and semi-literate people under the previous management linked to S. Alam Group. Many of these individuals were allegedly appointed in exchange of money and without public job circulars or exams, he said. The cost of maintaining these illegally appointed officers is estimated to be over Tk 1500 crore annually, translating to a total loss of more than Tk 10,000 crore for the bank over the past seven years, according to a Bangladesh Bank report. This massive financial burden, coupled with the looting of over Tk1.0 lakh crore from the bank makes the institution's future financial stability almost impossible, it said. Bangladesh Bank’s investigations also found that several employees had used fake educational certificates. The crisis intensified recently when approximately 90 percent of these employees boycotted a special competency test arranged by the current bank management to re-evaluate their professional competency. In a display of direct defiance, these officers have reportedly engaged in a campaign of slander against the bank, held press conferences, and issued threats to the present management. As part of these activities, the bank's official Facebook page was allegedly hacked on Friday morning, purportedly instigated by ‘outsiders’. A former director of Islami Bank expressed serious concern saying that customer funds may not be safe in the hands of these rebellious employees whose open defiance indicates that bank vaults or cash counters are not secure under their supervision. He warned that the bank may face a severe crisis if swift action is not taken. Officials said the irregular appointments had turned the once internationally reputed bank into a regional institution heavily influenced by the Chattogram-based group. Office space for proposed 'United Islami Bank' approved in Sena Kalyan Bhaban Many of the recruits reportedly spoke only in local dialects inside offices creating communication barriers and deteriorating customer service. They used the power and influence of S. Alam to mistreat colleagues, ignore instructions from superiors, and arbitrarily force transfers to preferred locations, often within the Chattogram region, said an official of HRD section of Islami Bank. Managers or senior officials who attempted to enforce rules were met with false allegations that threatened their posting or job security. The climate of fear created by their power and insolence kept the entire management, including zonal heads in a state of constant anxiety. The officials are still threatening to return to their positions after the next national election, along with S. Alam, said the official. Banking professionals have warned that such large-scale irregularities and fund misappropriation have undermined public confidence in the sector. Masrur Arefin, Managing Director of City Bank, at a progrmme of bankers recently said, “S. Alam alone has destroyed the entire banking sector.” Meanwhile, customers have also voiced frustration online. “The illegal bankers of Patiya are protesting to keep their jobs, but why aren’t they demanding the return of Tk 1 lakh crore allegedly smuggled by their ringleader S. Alam?” wrote Aminul Islam on social media.

Md. Omar Faruk Khan has been appointed as Managing Director (MD) of Islami Bank Bangladesh. Prior to this, he was serving as the Managing Director (Current Charge) of the bank. He previously served as the acting managing director at NRB Bank. Bangladesh Bank approved his appointment on Sunday, while the board of directors of Islami Bank was made a recommendation of his appointment as MD on July last week.  Bangladesh Bank directs all banks to participate in ‘Tarunner Utsab 2025’ procession Khan joined Islami Bank in 1986 after completing his master’s degree in Sociology from Dhaka University. He successfully served nearly four decades in various positions as the head of Treasury, Foreign Trade, different Wings including Corporate Investment, and different Divisions at the head office, as well as the head of Zone and branches, including Local Office.  Khan is a Diploma Associate of the Institute of Bankers Bangladesh and holds the Certified Documentary Credit Specialist (CDCS) qualification from the London Institute of Banking and Finance, affiliated with the ICC. Garment factories to observe 'July Uprising Day' as holiday Throughout his career, he participated in various seminars and training programs on banking, including international banking and credit management, in several countries, i.e, Switzerland, France, Germany, Italy, China, Malaysia, Qatar, Thailand, India, Saudi Arabia, the United Arab Emirates, and Nepal. He was born in 1963 at Laxmipur, according to a press release.

Obayed Ullah-Al Masud on Thursday stepped down as chairman of Islami Bank, the country’s largest private sector bank, amid probe into his alleged corruption, authorities said. His resignation came after reports about his involvement in corruption and his connection to controversial businessman S Alam. He submitted the resignation letter to the bank’s Board of Directors, which was formed by Bangladesh Bank following the country's political change last year. Professor Zubaidur Rahman, the independent director of the Board of Directors of Islami Bank Bangladesh, is likely to be appointed as the new Chairman. The process of his appointment is underway, according to sources at the central bank. After the Bangladesh Financial Intelligence Unit (BFIU), central bank's financial intelligence agency, sought bank account details of Masud, and five members of his family on July 14, he failed to meet the central bank governor. After that, Masud was preparing to resign. The BFIU letter instructs banks to provide details of all accounts (including account opening forms and updated statements), savings certificates, bonds, lockers, credit cards, student files, pre-paid cards, gift cards, and vouchers for transactions of Tk 5 lakh or more related to Masud and his family members, or any entity in which they have an interest, by July 15. BKTCC and IBBL arrange discussion on sending remittances through legal channels This development comes amid serious allegations of financial irregularities and money laundering linked to a 1320MW coal-fired SS Power Plant project in Banshkhali, Chittagong. Approximately US$815.78 million was allegedly siphoned out of Bangladesh by just two Letters of Credit (LCs) for this project, implemented as a joint venture between S. Alam Group's subsidiary SS Power Limited and Chinese partner SEPCO. This vast sum was reportedly sent abroad for 'capital machinery imports,' even though not a single piece of machinery arrived in the country, according to a Bangladesh Bank investigation. Sources indicate that 184 invoices were submitted against these two LCs, opened through Rupali Bank, but most were fraudulent or issued with future dates. Some invoices even used the names and export documents of other companies. Crucially, there is no import data for SS Power on the servers of the National Board of Revenue (NBR) or Bangladesh Bank, despite foreign currency being released, said the sources of the central bank. At the time of these alleged irregularities, Masud was the Managing Director of Rupali Bank.

Islami Bank Grahak Forum (IBGF) on Sunday demanded that Islami Bank be returned to its founding directors to restore customer trust. At a press conference at the Jatiya Press Club, the forum said that the current management has failed to operate the bank in a customer-friendly manner, leading to difficulties for many businesses in securing working capital loans and investments. Islami Bank demonstrates resilience, gains customers’ trust As a result, the production sector is facing significant hurdles in opening letters of credit (LCs), while Islami Bank continues to pay around Tk 14,000 crore in deferred LC liabilities linked to S. Alam Group beneficiaries. Prominent businessman Abdul Hoque, convenor of IBGF, and Abul Kashem Haider, joint convenor and chairman of Islamic Finance and Investment PLC, addressed the event. The IBGF presented a five-point demand, which includes: Regularisation of classified investments: The forum called for the reclassification of investments that were allegedly marked as non-performing under the S. Alam-appointed management. Protection of borrowers from harassment: They urged an end to the harassment of entrepreneurs and borrowers, many of whom defaulted due to the bank's withdrawal of funding necessary for industry operations. Restoration of Shariah compliance: The IBGF accused the current management of derailing Islami Bank from its Shariah-based banking principles and demanded its restoration. Removal of officials linked to S. Alam Group: The forum called for the removal of bank officials who allegedly facilitated financial irregularities that led to the looting of over Tk 1 lakh crore. Reinstatement of the founding management: They demanded the reinstatement of previous directors, whose leadership, they claim, had established Islami Bank as the country’s top private-sector financial institution.  

Bangladesh Bank Governor Dr Ahsan H Mansur has said that several banks, which were on the brink of bankruptcy, are now making significant strides in recovery due to strengthened regulatory measures and improved management practices. “Banks are not private or family entities; they belong to everyone. Depositors are the true owners of banks. Among the 10 banks that were on the brink of bankruptcy, many have managed to bounce back,” Dr Mansur said while speaking at the inauguration of Islami Bank Bangladesh PLC’s 400th branch in Ghatail, Tangail, on Saturday. The Governor also addressed issues of money laundering, assuring that efforts are underway to retrieve assets from those who have fled abroad with illicit funds. Bangladesh Bank sets maximum age limit to join NBFI jobs at 32 years  About inflation, Dr Mansur said, “Inflation remains high, but we are working to bring it down. By June next year, we aim to stabilise the rate to a more acceptable level.” Islami Bank Praising Islami Bank’s achievements, Dr Mansur said, “Islami Bank is the leading bank in the country. It holds the trust of millions, and its progress is vital for the nation’s economy. Within the last five months, Islami Bank has substantially improved its position, attracting Tk 7,000 crore in new deposits and maintaining its top position in remittance collection. This bank will not look back.” The Governor expressed optimism about reinstating foreign investors, emphasising that Islami Bank has the potential to grow tenfold and reclaim its status as an international institution. Bangladesh Bank ready to ensure enhanced cash flow: Dr Yunus The inauguration ceremony, presided over by Islami Bank Chairman Obaid Ullah Al Masud, highlighted the bank’s expansive network, with 400 branches, 265 sub-branches, over 2,800 agent outlets, and more than 3,000 ATMs and CRM machines across the country. Islami Bank Bangladesh PLC continues to set a benchmark in the banking sector, driving rural and urban economic growth while upholding its commitment to Shariah-based and welfare-oriented banking.

Bangladesh Bank and the interim government are undertaking significant efforts to restructure the country’s banking sector, focusing on recovering both local and foreign assets embezzled by corrupt individuals. Officials have confirmed that these assets, laundered abroad, are being targeted for repatriation as part of a broader initiative to bring the financial sector up to international standards. The government emphasized its commitment to reforming the financial sector, acknowledging that the process is complex and time-consuming. A key element of this strategy will be the establishment of a banking commission tasked with investigating each implicated bank, uncovering the full extent of the corruption, and developing an action plan, according to the Chief Adviser’s press wing. This plan, which can be implemented within six months, aims to overhaul the sector to ensure compliance with global banking norms. The aim of Bangladesh Bank and the government is to be capable of complying with all international standards and building a strong banking sector. However, international technical assistance and funding will be required from the beginning to the end of the activities to achieve this objective. Read more: Bangladesh Bank reconstitutes boards of 3 banks, inc. two controlled by S Alam Group The reforms come in response to revelations that unscrupulous businessmen and influential figures have embezzled vast sums from the banking sector, laundering the funds abroad through fraudulent activities. Preliminary estimates suggest the total embezzled amount could exceed Tk 1 lakh crore, though the exact figure is still being determined. Significant steps have already been taken, with reforms initiated in several banks linked to the scandal. The boards of Islami Bank, Social Islami Bank, National Bank, United Commercial Bank, Global Islami Bank, and Union Bank have been reconstituted as part of the restructuring efforts. Similar measures will be implemented across other affected banks and financial institutions. The government has also sought assistance from foreign agencies to track and repatriate the laundered funds. As the new management teams take control, they will be responsible for gathering accurate data on the embezzled amounts and leading the recovery efforts. Read more: Businesses agree with central bank's steps against bank robbers: DCCI

Five people including four officials of Islami Bank Bangladesh Limited (IBBL) PLC sustained bullet injuries in a clash between two groups of the bank in front of its head office in Motijheel area of Dhaka on Sunday (August 11, 2024). Four of the injured identified as officials Mamun, Abdur Rahman, Baki Billah and godown guard Shahfiullah Sardar are now undergoing treatment at a hospital. Sources said some officials under the banner of ‘Anti-Discrimination Banker Society’ were trying to hold a rally in front of the head office in the morning. Read more: Islami Bank continues to reject cheques of ‘suspicious companies’ Some bank officials, who work for the S Alam Group, barred them from holding the rally, resulting in a scuffle between them, they said. At one stage, shots were fired at the protesters, leaving five people injured, they said. A tense situation has been prevailing in and around the bank following the incident. Motijheel Police Station’s Officer-in-Charge Abul Kalam Azad could not be reached over mobile phone despite repeated attempts. Read more: Executives appointed by S Alam will not be allowed to enter Islami Bank: CBA of the bank

A two-day Business Development Conference of Islami Bank Bangladesh PLC began on Saturday at a hotel in the capital. Dr. Tanveer Ahmad, vice chairman of the Bank inaugurated the conference as chief guest while Mohammed Monirul Moula, managing director and CEO of the bank presided over the program, said a press release. Dhaka Int’l trade fair begins Sunday Mohammad Solaiman, FCA, Chairman, Audit Committee, Professor Dr. Mohammad Saleh Jahur, Chairman, Risk Management Committee, Md. Joynal Abedin, Professor Dr. Mohammad Sirajul Karim, Syed Abu Asad, Mohammad Quamrul Hasan, Professor Md. Fashiul Alam, Khurshid-Ul-Alam, Mohammed Nasir Uddin, FCMA, Borhan Uddin Ahmed, Abu Sayeed Mohammad Quasem, & Showkat Hossain, FCA, Directors and Maolana Obaid Ullah Hamzah, Chairman, Shariah Supervisory Committee of the Bank attended the program as special guests. United Aygaz holds daylong gathering for distributors, retailers in Ctg Speakers said that Islami Bank paid the highest tax in the govt. exchequer. It has been recognized as the country’s 'Strongest Islamic Retail Bank'. They said that 23 per cent of the country's total remittances came through the Islamic Bank alone. BGMEA President emphasizes alignment of education with industry needs Islami Bank received the Bangladesh Bank Remittance Award-2023 for collecting the highest remittance and the "Payment Excellent Award 2023" by world-renowned payment gateway VISA, read the release.

Islami Bank Bangladesh Plc provided Tk 1.25 crore as a sponsor of a special convocation of the Dhaka University. Professor Dr. Md. Akhtaruzzaman, Vice Chancellor of the university, received the cheque from the bank's Managing Director (Current Charge) Muhammad Qaisar Ali and Deputy Managing Director Md. Akiz Uddin on Thursday. Read : Dhaka University's IBA wins 'Battle of Minds' competition The university treasurer Professor Mamtaz Uddin Ahmed, registrar Probir Kumar Sarker and director of accounts Mohammad Shaiful Islam and Islami Bank Head of Brand and Communication Nazrul Islam were present during the occasion, said a press release. Read : Ex-Dhaka University professor Rowshan Jahan passes away

Noakhali Zone of Islami Bank Bangladesh Thursday organised the "Agent Banking Business Development Conference" and "Workshop on Prevention of Money Laundering and Terrorist Financing." Mohammed Monirul Moula, managing director and chief executive officer of the bank, addressed the conference as the chief guest in Noakhali. Read: Islami Bank remittance clients to get motorcycles Md Omar Faruk Khan, additional managing director, and Mohammed Shabbir, deputy managing director, also spoke at the programme. Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic Shariah. It is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.