The first meeting of the newly reconstituted board of Islami Bank took place on Thursday with Bangladesh Bank officials after expelling all S Alam appointed directors from the bank.
The meeting attended by Bangladesh Bank Governor Ahsan H Mansoor talked about, among others roadmap of recovery of laundered money and its quick implementation, sources said.
The newly appointed chairman of the Islami Baml Obaid Ullah Al Masud spoke to reporters after the meeting. He was appointed as an independent director and made chairman of Islami Bank on August 22. Masud was former Managing Director (MD) of Sonali Bank from 2016 to 2019 and Rupali Bank from 2019 to 2022.
Masud said more than half of the loan that Islami Bank distributed over the past seven years was taken away by S Alam Group as it was controlling the bank. He said no mortgage was given against most Islami Bank's loan or their assets were highly valued for mortgage.
He said they are taking assistance of the Ministry of Law to find such assets.. After finding these resources, Islami Bank will try to take control of these resources
He said after the collapse of Awami League government, the bank management was able to talk publicly about the situation and assess the loan scam and institutional damages.
Obaid Ullah Al Masud said, he got the responsibility of Sonali Bank after the Hallmark scam and in his view the problem at Islamic banks is very big. For this the bank has formulated a roadmap for the recovery of the bank and strictly trying to implement it on day to day basis.
He said this year (2024-25) will be the year of regaining customers' confidence which will continue through next year as well as through 2026-27. The year 2028-30 has been earmarked as the year to move forward,
The bank chairman the liquidity crisis started in Islami Bank from 2022. Now no one from bank customers, expatriate income remitters, shareholders and foreign entrepreneurial organizations has confidence in the bank.
Three audit organizations have been appointed to verify the actual condition of the bank. They will audit the bank's lending, investment and human resources. There was no credible audit before that caused the dire situation.
About actions taken against bank officials involved in loan irregularities, Obaid Ullah Al Masud said money has been diverted to different sectors. Evil officials are being identified. Steps will be taken gradually. He also said Bangladesh Bank will assist in overcoming the situation.
Since S Alam Group captured the bank in 2017 it has taken a total loan of Tk 1,75,000 crores loan of which Tk 88,000 crore was taken alone by Ahsanul Alan, son of S Alam.
Meanwhile 82 percent of the bank's shares went to S Alam Group. However, the capital market regulator Bangladesh Securities and Exchange Commission (BSEC) has banned six banks under S Alam control including Islami Bank, from transferring their shares.
