Islami Bank hit by 'Tk10,000cr losses after years of irregular hiring'

Islami Bank Bangladesh PLC is facing a severe financial and managerial crisis due to years of irregular recruitment under S Alam Group, according to officials.

The bank's management has recently begun efforts to restore order by assessing the competency of thousands of unqualified staff who were reportedly hired without proper procedures.

Kamal Uddin Jasim, Additional Managing Director (AMD) of Islami Bank Bangladesh PLC (IBBL), said the bank is incurring a staggering annual loss of over Tk1500 crore due to the unauthorised, large-scale hiring of more than 8,000 unqualified and semi-literate people under the previous management linked to S Alam Group.

Many of these individuals were allegedly appointed in exchange of money and without public job circulars or exams, he said.

The cost of maintaining these illegally appointed officers is estimated to be over Tk1500 crore annually, translating to a total loss of more than Tk10,000 crore for the bank over the past seven years, according to a Bangladesh Bank report.

This massive financial burden, coupled with the looting of over Tk1 lakh crore from the bank makes the institution's future financial stability almost impossible, it said.

Bangladesh Bank's investigations also found that several employees had used fake educational certificates.

The crisis intensified recently when approximately 90% of these employees boycotted a special competency test arranged by the current bank management to re-evaluate their professional competency.

In a display of direct defiance, these officers have reportedly engaged in a campaign of slander against the bank, held press conferences, and issued threats to the present management.

As part of these activities, the bank's official Facebook page was allegedly hacked on Friday morning, purportedly instigated by 'outsiders'.

A former director of Islami Bank expressed serious concern saying that customer funds may not be safe in the hands of these rebellious employees whose open defiance indicates that bank vaults or cash counters are not secure under their supervision.

He warned that the bank may face a severe crisis if swift action is not taken.

Officials said the irregular appointments had turned the once internationally reputed bank into a regional institution heavily influenced by the Chattogram-based group.

Many of the recruits reportedly spoke only in local dialects inside offices creating communication barriers and deteriorating customer service.

They used the power and influence of S Alam to mistreat colleagues, ignore instructions from superiors, and arbitrarily force transfers to preferred locations, often within the Chattogram region, said an official of HRD section of Islami Bank.

Managers or senior officials who attempted to enforce rules were met with false allegations that threatened their posting or job security.

The climate of fear created by their power and insolence kept the entire management, including zonal heads in a state of constant anxiety.

The officials are still threatening to return to their positions after the next national election, along with S Alam, said the official.

Banking professionals have warned that such large-scale irregularities and fund misappropriation have undermined public confidence in the sector.

Masrur Arefin, managing director of City Bank, at a progrmme of bankers recently said, "S Alam alone has destroyed the entire banking sector."

Meanwhile, customers have also voiced frustration online.

"The illegal bankers of Patiya are protesting to keep their jobs, but why aren't they demanding the return of Tk1 lakh crore allegedly smuggled by their ringleader S Alam?" wrote Aminul Islam on social media.