Islami Social Islami Bank, which is listed on the stock market, wanted to hold an annual business conference at Cox’s Bazar beach at a cost of around one and a half crores.
However, considering the overall financial situation of the bank, the central bank rejected the conference. Instead, the bank has been asked by the financial sector regulator to organize a low-cost conference at its own office in Dhaka.
Earlier, in view of the decision of the board meeting, Social Islami Bank had written to the central bank on December 8, requesting to hold a conference in Cox’s Bazar.
It is said in the letter that the annual business conference is going to be organized at Baywatch Hotel in Cox’s Bazar on 17 and 18 December. There will be 270 participants. Excluding VAT, the estimated cost of this event is Tk 1 crore 10 lakh.
Social Islami Bank Acting Managing Director Nazmus Sadat told the media, ‘We wanted to hold a business conference in Cox’s Bazar at a low cost. Our plan was to have a conference with each branch manager at the beginning of the year, so that they can work with renewed enthusiasm. However, the central bank has asked to hold a conference in Dhaka to reduce costs. We will hold the conference on a different date in Dhaka itself.’
On August 25, Bangladesh Bank reorganized the board of directors of Social Islami Bank after freeing the control of S Alam Group. In this process, one entrepreneur shareholder is appointed as director and four as independent directors.
After the board reshuffle, the bank’s top five executives, who were close to the S Alam Group, resigned. Allegedly, since the S Alam Group took control of the bank in 2017, money has been taken out through various irregularities, due to which the bank has fallen into financial crisis.
The central bank had been printing money to support the bank for almost two years. But after the fall of the Awami government through the student movement, the facility was closed, resulting in the bank facing a liquidity crisis and failing to return money to customers.
Although the liquidity crisis of Social Islami Bank eased somewhat after the assistance from the central bank, the severe crisis continued between last August and October. However, in the second week of last October, the bank’s liquidity situation improved slightly, as a result of which customers were able to withdraw a maximum of Tk 20,000.
