Belal Ahmed new acting chairman of SIBL

Social Islamic Bank Limited has appointed Belal Ahmed as the new acting chairman amid media reports on the resignation of the previous one.

While talking to The Business Standard on Tuesday, SIBL Managing Director (MD) Zafar Alam confirmed the news.

Prior to assuming the new post, Belal Ahmed was the bank vice chairman and the executive committee (EC) chairman. 

MD Zafar Alam said Mahbub Ul Alam and Abu Reza MD Yeahia submitted their resignations on 28 January citing personal reasons which were accepted at Tuesday's board meeting. 

The news of Chairman Mahbub Ul Alam and AMD Abu Reza MD Yeahia's resignations came to the media on Monday. 

In August last year, three Islamic banks gave a loan of about Tk6,500 crore to an organisation named "Nabil Group" without sufficient documents and collateral. 

Among them, Islami Bank gave the highest of Tk4,050 crore. The First Security Islami Bank gave Tk1,200 crore and Social Islami Bank gave Tk1,120 crore.

After that, the number of deposits of most Sharia-based banks started to decrease due to the emergence of loan irregularities in several institutions of Shariah-based banks. 

After a change in ownership of SIBL in 2017, all previous directors were removed. 

Former vice-chancellor of Chittagong University Anwarul Azim was first made the chairman of SIBL. Later, Mahbub Ul Alam became the chairman.

According to the Central Bank data, the bank's loan amount at the end of September 2022 was Tk33,919 crore. Out of this, the defaulted loan amount was Tk1,669 crore, 5% of the total loan.

A central bank investigation found that proper norms were not followed in lending to several institutions. It concluded that Tk5,500 crore in loans was eligible for default status. 

If calculated accordingly, the bank's default rate will be more than 23%.

Meanwhile, since 15 December, Bangladesh Bank has asked five banks, including the SIBL, to submit daily information on the disbursement and collection of loans of more than Tk10 crore.