The Bangladesh Bank has announced its decision to dissolve the board of directors of Islami Bank in the coming days and place all shares owned by S Alam Group and its affiliates under government control. Governor Dr. Ahsan H Mansur made these announcements during a press conference on Wednesday, stating that a new board of directors will soon be formed for Islami Bank.
In the meantime, independent directors from S Alam’s other six banks will be temporarily moved to Islami Bank. Dismissed directors of Islami Bank may be reappointed if they purchase 2% of the bank’s shares. Mansur emphasized the need to rescue the bank from its current troubled state, acknowledging that while it may be difficult to recover all funds, efforts will focus on salvaging what can be saved.
Regarding the directors, he noted that those who are deemed fit and able to buy 2% of the shares can become shareholder directors. Bangladesh Bank is also investigating the extent of S Alam’s shareholding in Islami Bank. The central bank plans to take over all shares of S Alam Group in line with legal procedures, with the possibility of the group reclaiming them upon repayment of their liabilities, though Mansur expressed doubt about their intentions, accusing them of significant financial misconduct.
The central bank, alongside the Anti-Corruption Commission (ACC), the Financial Intelligence Unit (BFIU), and the CID, will collaborate to recover funds allegedly looted by S Alam.
S Alam Group and its affiliates are connected to five listed banks: Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Global Islami Bank, and Union Bank, as well as the non-listed Bangladesh Commerce Bank. Mansur mentioned that while not all bank boards under S Alam’s control would be dissolved immediately, decisions would be made gradually. On Tuesday, the board of National Bank was dissolved to protect depositors’ interests, as per an order by Mansur.
Additionally, the Bangladesh Securities and Exchange Commission (BSEC) has banned 26 individuals and 56 companies associated with S Alam Group from buying, selling, or transferring shares, based on a list provided by Bangladesh Bank. The ban affects key figures of S Alam Group, including its owner Mohammad Saiful Alam, his family members, and several associates, along with various companies linked to the group.
