Photo : Collected
Following the recent ouster of the government, Islami Bank Bangladesh PLC has initiated measures to address the alarming trend of money withdrawals linked to fictitious loans. Last Tuesday, in a significant move, the bank blocked the withdrawal of Tk889 crore in a single day, stemming from attempts by two companies—Golden Star and Top Ten Trading House—to withdraw substantial sums of money.
According to bank officials, both institutions are affiliated with the bank's ownership, indicating that the withdrawals could only be curbed following the change in government.
The turmoil within Islami Bank intensified on Wednesday, as the instability that had plagued the institution since the fall of Sheikh Hasina's government reached a critical point. A faction of bank officials, including those who felt marginalized or overlooked, staged a protest demanding the resignation of individuals who had joined the bank in the past seven years. This outcry culminated in the resignation of Additional Managing Director Muhammad Qaisar Ali the following day.
In a related development, it was reported by the daily Prothom Alo that five cheques from Sonali, Janata, Rupali, Pubali, and City banks were presented for encashment at Islami Bank's Agrabad branch in Chattogram on Tuesday. The cheques were issued by the Golden Star organization, while the withdrawal attempt by Top Ten Trading, amounting to Tk548 crore, was also thwarted on the same day.
Attempts to reach Muhammad Munirul Maula, the managing director of Islami Bank, for comment on these developments were unsuccessful. However, an insider from the bank disclosed to Prothom Alo that the institution was on the verge of collapse due to the extensive amount of fictitious loans. It was noted that money was being withdrawn and transferred abroad in foreign currency, exacerbating the bank's precarious situation.
A central bank official further emphasized the seriousness of the issue, revealing that Islami Bank had been prohibited from issuing new loans. "What can be done if they don't listen? We are waiting for a decision from the new government," the official remarked, highlighting the urgency of the situation.
Islami Bank Bangladesh PLC, incorporated on March 13, 1983, is a prominent Islamic banking institution in Bangladesh, beginning its operations shortly thereafter on March 30 of the same year. It has established a robust presence in the country, boasting its own ATM booths along with a nationwide shared ATM network. Over the years, Islami Bank has emerged as the largest private banking network in Bangladesh, offering a range of services to its customers.
The bank has garnered recognition for its performance, with Global Finance—a well-respected quarterly magazine based in the United States—bestowing accolades upon it. It was named the best bank in Bangladesh for several years, including 1999, 2000, 2004, and 2005. Moreover, it was recognized as the best Islamic financial institution in Bangladesh annually from 2008 to 2013.
The current crisis at Islami Bank highlights the vulnerabilities within the financial sector, particularly in the face of political instability. The measures taken by the bank to block suspicious withdrawals reflect a broader effort to restore integrity and trust in the banking system, amidst calls for accountability and reform. The future of Islami Bank will depend on the decisions made by the new government and the commitment of its management to address the underlying issues plaguing the institution.
Messenger/Fameema
