B Mirror Report:  Bangladesh Bank Governor Md. Mostakur Rahman held a meeting with the board of Islami Bank Bangladesh PLC on Monday, where the bank presented several demands and sought regulatory support to restore normal operations.

The meeting, held at the central bank headquarters, was attended by Islami Bank Chairman Prof. M. Zubaidur Rahman, board members, the managing director, and other senior officials.

Sources said the chairman highlighted that Islami Bank is owed around Tk 10,000 crore by five Shariah-based banks and urged swift recovery of the funds. The bank also has outstanding dues from state-owned Janata Bank.

Islami Bank also requested the release of around Tk 1,000 crore in pending remittance incentives from Bangladesh Bank. In addition, it sought support in recovering large loans, regulatory flexibility in provisioning under special circumstances, and guidance in maintaining relationships with major industrial groups.

Governor Rahman assured that the issues would be reviewed carefully and that decisions would be communicated soon. A senior central bank official said the governor also inquired about operational challenges and instructed relevant departments to examine the matters.

Earlier, on February 17, Bangladesh Bank removed Islami Bank director Md. Abdul Jalil and appointed accountant S.M. Abdul Hamid in his place.

Between 2017 and August 2024, before the fall of the Awami League government, Islami Bank was effectively controlled by the S Alam Group. During this period, around Tk 1.2 lakh crore was allegedly withdrawn through various means, and nearly 10,000 officials were recruited irregularly, pushing the bank into a deep crisis.

After the interim government took office in 2024, the bank’s board was reconstituted, and several senior officials left the country. Md. Abdul Jalil had been part of the restructured board.

This was the second meeting between the governor and the board. In their first meeting in February, Rahman said the bank had once been strong but later suffered from governance weaknesses. He reaffirmed the central bank’s commitment to restoring stability and stressed that no single group, party, or family should control a bank.

Meanwhile, a Bangladesh Bank report sent to the Anti-Corruption Commission stated that the S Alam Group borrowed about Tk 1.9 lakh crore from four of the eight banks under its influence, including around Tk 1.05 lakh crore from Islami Bank alone.

The Financial Intelligence Unit also reported that more than Tk 93,000 crore was laundered through fake entities. S Alam Group chairman Saiful Alam Masud and affiliated firms allegedly secured these loans by exerting influence directly or through intermediaries.