BM Desk : Regarding the survival of Social Islami Bank (SIBL), which is listed on the stock exchange, the auditor has voiced concerns. This worry was voiced by the auditor during the examination of the business’s most recent 2024 financial statements.
The capital risk-weighted assets ratio (CRAR) of the bank’s financial statements, according to the auditor, is 6.43%. But when the provisioning shortfall is taken into account, this ratio is negative 33.95%. This results in a capital deficiency of Tk 2,285.1 crore for the bank.

Meanwhile, the auditor indicated that the bank has struggled to comply with the CRR and SLR requirements for an extended period. This is largely due to over 60 percent of the bank’s investments or loans becoming non-performing. Additionally, customer deposits have fallen by 16.64%, while placement liabilities have surged by Tk 9,850 crore.

In light of this troubling situation, the auditor has raised concerns regarding Social Islami Bank’s capacity to operate effectively in the future.

The auditor noted that the bank requires a provision or reserve of 2,315 crore 81 lakh taka for its investments. However, they have only set aside 1,502 crore 62 lakh taka, resulting in a reserve shortfall of 813 crore 19 lakh taka in the financial statement for 2024.

In 2024, the bank would have reported a loss of 914 crore 66 lakh taka, or 8.02 taka per share, if a portion of the reserve deficiency had been established. The bank officials, on the other hand, declared a loss of 101 crore 47 lakh taka, or 0.89 taka per share.

It is crucial to note that Social Islami Bank, which went public in 2000, has 1,140 crore 16 lakh taka in paid-up capital. Investors from different stock market segments (apart from directors and entrepreneurs) own 88.38 percent of this total. On Sunday, July 6, the company’s share price was Tk 8.10.