Islami Bank suspends 6 officials over loan irregularities linked to S Alam Group
The suspension letters were issued by the bank today, according to sources within IBBL
Islami Bank Bangladesh Limited has suspended six officials for their alleged involvement in irregularities related to loans disbursed to S Alam Group.
The suspension letters were issued by the bank today (5 December), according to sources within IBBL.
The suspended officials are Md Mostak Ahmed, senior assistant vice president (AVP) (Rangpur zone); Amin Ullah Pasha, AVP (Khulna zone); Md Didarul Alam, AVP (Feni Sadar branch); Nurul Amin, first AVP (Khatunganj Branch); Abbas Ahmed, FAVP (Khatunganj Branch); and Md Anwarul Haque, principal officer.
Keep updated, follow The Business Standard's Google news channel
Confirming the matter, an official from the Khatunganj branch stated that three officers from the branch have been temporarily suspended following an order from the head office.
He also mentioned that the three suspended officers from the other zones had previously been employed at the Khatunganj branch.
When asked about the reason for the suspension, the official said preliminary probe findings suggested that the suspended officials facilitated the disbursement of loans without adhering to proper procedures.
He also mentioned that the Khatunganj branch accounted for the largest share of loans disbursed to S Alam Group by the Islami Bank.
He further stated that separate investigations are underway by multiple bodies, including the Bangladesh Bank, the Bangladesh Financial Intelligence Unit (BFIU), and the Anti-Corruption Commission (ACC), to probe into the allegations of irregularities regarding Islami Bank's loan disbursements to S Alam.
Additionally, the bank's internal audit department and an independent audit firm, appointed separately, are also working to uncover the irregularities, he added.
S Alam Group, along with its affiliated entities, reportedly withdrew Tk73,113 crore in loans from Islamic Bank – amounting to nearly 50% of the bank's total loan portfolio.
Of this, Tk 42,000 crore was disbursed through the Khatunganj branch alone.
Earlier, Islami Bank Bangladesh had dismissed several top executives linked to S Alam Group, including deputy managing directors (DMDs) and other senior officials. On 19 August, eight high-ranking officials were suspended, followed by further dismissals on 25 September, including a principal officer accused of involvement in recruitment and transfer irregularities.
The principal officer, Hossain, was from the bank's Chawkbazar branch, and was the husband of Marjina, a domestic help employed by S Alam Group Chairman Mohammed Saiful Alam. Allegations suggest that Hossain was involved with Deputy Managing Director Akij Uddin in illicit recruitment and transfer dealings within the bank.
