Islami Bank market cap rises by Tk1,690cr last week

Islami Bank Bangladesh topped the gainers' list on the Dhaka Stock Exchange (DSE) last week, with its share price soaring by 31.25%, adding Tk1,690 crore to its market capitalisation.

According to market insiders, the bank's shares gained in all four trading sessions during the week, starting at Tk33.60 and closing at Tk44.10 by week's end.

The rally propelled Islami Bank's market capitalisation from Tk5,409 crore to Tk7,100 crore, moving it up to the 10th position from 13th among the DSE's most valuable listed companies.

However, the sudden and sharp price spike has drawn attention from market observers, especially as there has been no official disclosure from the bank regarding earnings, dividends, or board meetings that could explain such a rally, market insiders said.

Earlier in June, Islami Bank sought a three-month extension to release its annual financials for 2024 and first-quarter results for 2025, citing unavoidable circumstances. 

The bank stated that the statements were not adopted at its board of directors' meeting held on 29 May. 

As a result, despite repeated attempts, the private sector lender failed to publish its financials, leaving shareholders in the dark.

Market analysts believe the recent rally in Islami Bank shares may have been driven by a rumor of a potential investment by the International Finance Corporation (IFC), and increased efforts by existing shareholders to raise their stakes.

According to Islami Bank's May shareholding report, 131.89 crore shares — representing 81.92% of the bank's total equity and owned by S Alam Group — remain blocked.