Islami Bank moves to auction S Alam Group’s assets to recover debt

Highlights: 

• Islami Bank to auction assets belonging to Infinity CR Strips Industries Limited
• Infinity CR Strips Industries Limited owes Islami Bank Tk2,738 crore
• The bank plans to auction 201.75 decimals of land

Islami Bank Bangladesh has announced the auction of assets belonging to Infinity CR Strips Industries Limited, a concern of S Alam Group, to recover outstanding loans under the Money Loan Court Act, 2003.

The bank's Khatunganj corporate branch in Chattogram issued a public notice in a national newspaper today (23 March), detailing the sale of the company's assets.

According to the notice, Infinity CR Strips owes Islami Bank Tk2,738 crore, including principal and interest, as of 20 March.

To recover the amount, the bank plans to auction 201.75 decimals of land along with associated building structures in Chattogram. Interested buyers have been invited to submit bids by 27 April.

The move follows the closure of Infinity CR Strips' factory in November last year, which S Alam Group attributed to a shortage of raw materials caused by the inability to open Letters of Credit (LCs).

S Alam Group's financial dealings with Islami Bank have been under scrutiny for years.

In 2019, the group acquired a controlling stake in the bank and took over its board of directors. During the period, the group reportedly secured loans exceeding Tk50,000 crore through undisclosed channels.

Currently, S Alam Group holds approximately 83% of Islami Bank's shares. However, these shares have been seized by order of the Bangladesh Bank.

Additionally, following the fall of the Awami League government, the board of Islami Bank was dissolved, ending S Alam Group's control over the bank.

This is not the first time financial institutions have moved to recover loans from S Alam Group.

Earlier, Janata Bank issued a similar auction notice to sell mortgaged assets of various associate companies under the group to recover debts of around Tk5,000 crore.