How S Alam’s Global Islami Bank cooked Tk2,259cr loss into Tk128cr profit
A recent audit report by the Bangladesh Bank reveals a stunning act of balance sheet manipulation, where the bank, despite incurring a substantial loss of Tk2,259 crore, falsely reported a net profit of Tk128 crore.

The 2023 financial statement of Global Islami Bank, a lender under the controversial S Alam Group, has been unmasked as a deliberate fabrication, painting a starkly different picture from its true financial health.
A recent audit report by the Bangladesh Bank reveals a stunning act of balance sheet manipulation, where the bank, despite incurring a substantial loss of Tk2,259 crore, falsely reported a net profit of Tk128 crore.
Adding to the deception, the bank had astonishingly announced a 5% cash and 5% stock dividend. Had this been approved, the Tk128 crore in purported profits would have been distributed, primarily to shareholders with close ties to S Alam, his family, and associates.
Behind this financial mirage, the then board of directors engaged in what appears to be a sophisticated exercise in "window dressing." They grossly underreported non-performing loans (NPLs) to evade provisioning requirements and artificially inflate profits.
The annual general meeting (AGM) scheduled for 8 August 2024, poised to ratify these fraudulent figures, never took place. Its cancellation came just three days prior, on 5 August, when the Sheikh Hasina-led Awami League government collapsed following a historic student-led mass uprising. This political upheaval inadvertently prevented the distribution of the Tk128 crore in 'fake' profits to those who orchestrated the deception.
Whistleblower exposes 'statistical corruption'
Mohammed Nurul Amin, the bank's independent director and current chairman of the board, has blown the whistle on the scandal. He disclosed to TBS that not only was the 2023 report doctored, but deep questions also surround the bank's financial statements from previous years.
"There has been statistical corruption in the bank's financials," Mr Amin stated. "The actual volume of NPLs was concealed. Loans that should have been defaulted were kept as regular accounts to show lower defaults and inflated profits."
He revealed that the bank officially reported less than 3% of its loans as non-performing in 2023. However, the true NPL ratio was significantly higher, escalating to between 87% and 90% by 2024. This shocking discrepancy reveals a bank teetering on the brink of collapse, deliberately hidden behind a glossy annual report.
Auditors under the microscope
Interestingly, Shafiq Basak & Co. Chartered Accountants, the audit firm that initially vetted Global Islami Bank's 2023 annual report during the S Alam regime, is now at the centre of the controversy. Banking and stock market regulators, along with the Financial Reporting Council (FRC), have raised serious questions about the roles of the auditors and all parties who signed off on the accounts.
Md Sajjad Hossain Bhuiyan, chairman of the Financial Reporting Council (FRC), confirmed to TBS, "Whether the misreporting or manipulation came from the bank's management or the auditors must be determined, and there is scope to take action accordingly."
Abul Kalam, spokesperson for the Bangladesh Securities and Exchange Commission (BSEC), added, "The commission will investigate the matter. If any irregularities are found, action will be taken as per the law."
A Bangladesh Bank official, speaking anonymously, indicated that multiple parties were involved in finalising the bank's 2023 report, and the irregularities stemmed from their collective failure to act responsibly. He noted that the Bank Company Act provides for fines for false financial disclosures.
Auditor's defence and rectified figures
A partner at Shafiq Basak & Co. Chartered Accountants stated that the 2023 financial report was initially prepared following Bangladesh Bank's guidelines. "Now the bank's board has changed. Since the previous report was not approved, they decided to conduct another audit. As a result, following Bangladesh Bank's new provisioning guidelines, provisions were made against non-performing loans, which led to this loss," the partner explained.
The initial 2023 financial report showed earnings per share (EPS) of Tk1.30. However, after restating the statement, a staggering loss per share of Tk21.79 was reported, which was published on the Dhaka Stock Exchange (DSE) website yesterday (Wednesday).
The rectified figures also show a negative net asset value per share of Tk9.14 and negative net operating cash flow per share of Tk0.16 for the year ended 31 December 2023. The disclosure clarified that there was no change in the 2022 figures.
Since the fall of the AL government, the bank has been unable to hold its AGM, so the dividend has neither been approved nor distributed. The AGM is now scheduled for 19 August, where the dividend decision will be made, according to a bank official.
The 2023 financial report showed NPLs at Tk342.72 crore, or 2.61% of the Tk13,141 crore total loans disbursed in 2023. However, bank sources say the actual NPL figure was underreported. An audit by Bangladesh Bank's appointed auditor put the NPL amount at Tk2,028 crore—nearly 25% of total loans.
Officials expect NPLs to rise further in the 2024 report, with losses again likely to exceed Tk2,000 crore.
A BSEC official said that, according to international financial standards, there is an opportunity to correct errors in any fiscal year's data. In some cases, regulators instruct the concerned company to amend and republish the information.
"However, it is necessary to investigate whether there is any incentive behind failing to present an accurate picture in financial reports. The Securities Act provides the scope to take action against listed companies," said the official.
IPO and share price plunge
In 2022, Global Islami Bank raised Tk425 crore in capital through an Initial Public Offering (IPO), approved by the BSEC in June of that year. Despite shares being issued at a face value of Tk10 each, the current share price has plummeted to a mere Tk3.30. The bank's failure to hold its AGM previously led to its shares being classified and traded under the Z category.
The raised capital was allocated for investments in SMEs (Tk100 crore), government securities and bonds (Tk268.50 crore), listed securities and bonds (Tk50 crore), and IPO-related expenses (Tk6.50 crore).
Post-government change: Board restructuring and recovery efforts
Following the fall of the Awami League government on 5 August 2024, Global Islami Bank's board was restructured on 29 August. The previous board was dissolved, and five independent directors were appointed.
Board Chairman Mohammed Nurul Amin confirmed that the true financial state of the bank was never reflected under the previous management. "The current board took over in August, so we had no role in the 2023 financial statements."
He described a severe liquidity crisis when the new board assumed control. "The declared dividend for 2023 required Tk180 crore, which the bank didn't have. We then wrote to the Bangladesh Bank requesting a re-audit. Audits were carried out by the central bank's appointed auditor, as well as our internal and external auditors. That's how the bank's real condition came to light," he explained.
Mr Amin further revealed that a major portion of the bank's loans, approximately Tk12,000–13,000 crore, went to entities owned by or linked to S Alam Group, often under proxy ownership, making recovery difficult. He anticipates significant losses for the bank in 2024, with NPLs expected to rise further.
"We are trying to repair the bank," Mr Amin affirmed, detailing efforts to stabilise it by cutting costs and seeking liquidity support from the Bangladesh Bank. So far, the bank has received Tk2,500 crore in liquidity support from the central bank.