The governor of Bangladesh Bank Ahsan H Mansur said that the board of all banks under the control of S. Alam will be dissolved. 

He said that the board of the National Bank was dissolved yesterday.

Governor Mansur disclosed the information at a press conference on Wednesday (August 21).

The moves aim to address the national financial crisis S Alam and his 25 family members created by taking huge amounts of loans from the six banks S Alam owns: Islami Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Bangladesh Commerce Bank. 

From Islami Bank alone S Alam took Tk75,000 crore loan, thanks to policy tweaks allowed by the autocratic Awami League regime. The loans are yet to be repaid.

After dissolving the Islami Bank board, the central bank would appoint independent directors for the time being, and the relieved directors can return to the board in the future by purchasing 2% bank shares, Governor Ahsan H Mansur noted in his Wednesday announcement.

“We will also take over all the shares of S Alam Group against its liabilities as per law. The group may be able to get back the shares if it repays the money,” Ahsan said.

In 2017, with Awami League government’s support, S Alam Group wrested control of Islami Bank from its past owners belonging to Jamaat-e-Islami party. The group now owns 82% shares of the bank, but on Tuesday the securities regulator blocked the stakes.

The decisions by state agencies against S Alam-owned banks come in the wake of a protest waged by a section of Islami Bank officials demanding restructuring of the bank board and overhauling of top management.

The fall of Awami League government on 5 August encouraged many within Islami Bank to openly protest against S Alam Group’s controversial policies.

BDST: 1944 HRS, AUGUST 21, 2024
MSK