Islami Bank Bangladesh plans to raise Tk 10,000 crore by selling the stake held by the S Alam Group, a Chattogram-based business conglomerate. The bank’s new Chairman, Md Obayed Ullah Al Masud, announced this decision at a press conference held at Bangladesh Bank. The move aims to recover a portion of the loans extended to the controversial business group.
S Alam Group is said to owe a significant portion of the loans disbursed by Islami Bank, with reports suggesting the group has taken more than half of the total loans, amounting to Tk 174,000 crore. This has raised concerns about the group’s financial stability and the bank’s exposure to its debt.
The S Alam Group and its associates are believed to own around 30 percent of Islami Bank’s shares, though allegations suggest they may hold a larger stake through the use of pseudonyms. The bank’s decision to sell these shares is part of its effort to recover the outstanding loans and reduce its financial risks.
Additionally, Islami Bank intends to invite former foreign investors, including Al Rajhi Bank from Saudi Arabia and the International Finance Corporation (IFC), to reinvest in the bank. These foreign stakeholders had previously held shares in Islami Bank but exited due to concerns over governance and management.
The sale of S Alam Group’s shares is seen as a crucial step in improving the bank’s financial health and restoring investor confidence, especially amid concerns over political influence and governance issues within the institution.
Source : The Daily Star
