Opposition leader flags concerns over Islami Bank control issue

Jamaat-e-Islami Ameer and opposition leader Shafiqur Rahman on Tuesday told Parliament that a group attempting to control Islami Bank Bangladesh PLC has once again turned its attention to the institution, urging immediate discussion on the matter.

Raising the issue during the third day of the budget session of the 13th Jatiya Sangsad, Shafiqur Rahman said Islami Bank is the country’s largest private-sector bank and handles a significant portion of national remittance inflows.

He said the bank had performed strongly in 2016 despite what he termed political pressure, earning over Tk 447 crore in profit with a low non-performing loan ratio of around 4 percent. However, he alleged that later authoritarian interference led to its takeover, resulting in financial deterioration and a sharp decline in profits by 2024.

The opposition leader further claimed that the bank’s non-performing loans have now risen to nearly 51 percent of total investments and that it had not been able to distribute dividends in recent years.

He said the bank was gradually recovering, with profits rising from Tk 108 crore to Tk 137 crore, when a renewed attempt was made to exert control over its management.

Shafiqur Rahman alleged that a controversial individual was recently appointed as chairman and that undue interference had forced the managing director to resign.

At this point, the Speaker interrupted, stating that the remaining part of the statement could be placed later, preventing the opposition leader from reading the full notice in the House.

In his written submission, the opposition leader also said attempts were being made to label Islami Bank as a Jamaat-controlled institution, adding that such claims were misleading given that millions of depositors had placed their trust in its management over the years.

He argued that previous allegations had been used to justify what he described as a takeover of the bank, which later led to financial irregularities and loss of confidence.

He also cited concerns over recent liquidity pressure, claiming that depositors had withdrawn nearly Tk 2,000 crore in a single day due to growing uncertainty.

Calling for parliamentary intervention, Shafiqur Rahman urged steps to ensure that the bank’s shares are returned to their legitimate owners and that all forms of undue interference in its management are stopped in order to protect depositors and the broader economy.

TZ