On Tuesday (September 2), Abdul Mannan, Chairman of First Security Islami Bank, revealed these details following a meeting with Bangladesh Bank Governor Ahsan H. Mansur. The governor participated in the meeting virtually.
Abdul Mannan stated that three separate audits confirmed that the S Alam Group secured Tk 38,000 crore through benami loans. Unable to obtain loans directly in their name, the group resorted to proxy methods to access the funds. The failure to recover these loans has plunged the bank into a severe financial crisis. Mannan emphasized that the bank aligns with Bangladesh Bank’s observations and decisions but stressed the importance of safeguarding depositors’ interests.
Sources within the banking sector revealed that Bangladesh Bank has already planned to merge five struggling banks, including First Security Islami Bank. The central bank believes that sustaining these banks independently is not feasible. However, this decision has sparked concerns among bank employees about potential job losses. Depositors are also worried about the security of their funds.
Economists have urged that the merger process must be transparent and well-planned to ensure both depositors’ interests and employees’ job security. They also emphasized that those responsible for irregularities and looting, which have weakened these banks, must be brought to justice. This incident has once again highlighted the critical need for transparency and accountability in the country’s banking sector.
