The S Alam Group, close to the ousted Awami League government’s Prime Minister Sheikh Hasina, looted First Security Islami Bank and Social Islami Bank. Mohammad Saiful Alam (S Alam) was the chairman of First Security Islami Bank, and his son-in-law Belal Ahmed was the chairman of Social Islami Bank. After the fall of the government, depositors of the two banks faced problems in withdrawing money. In such a situation, Bangladesh Bank is lending money to these two banks again. This time, 2500 crore taka will be given. The central bank will provide it by printing new money. Central Bank Governor Ahsan H Mansur gave this approval on Thursday. This information was revealed by Bangladesh Bank sources.
When asked, Bangladesh Bank’s assistant spokesperson Mohammad Shahriar Siddiqui said, “The two banks were facing liquidity problems. They applied a few days ago. Their application was approved on Thursday. As a result, the two banks will get a loan of 2500 crore taka.” However, the spokesperson could not give a specific answer on how long the support will be provided by printing money in this way.
A Bangladesh Bank source said that Social Islami Bank will be given Tk 1.5 billion and First Security Islami Bank Tk 1 billion in liquidity support. With this new Tk 2.5 billion, the total amount of money given to banks in this way during the current governor’s tenure will be Tk 29,410 crore. Of this, Tk 5,500 crore has been given to SIBL and Tk 6,500 crore to First Security Islami Bank. In addition, Tk 5,000 crore has been given to National Bank, Tk 2,000 crore to Union Bank, Tk 200 crore to Bangladesh Commerce Bank, Tk 100 crore to ICB Islami Bank, Tk 2,000 crore to Global Islami Bank, Tk 8,500 crore to Exim Bank and Tk 200 crore to AB Bank by printing money.
In late 2022, when news of loan frauds by banks owned by S Alam Group was published in various media, customers became wary. At that time, Bangladesh Bank started lending to these banks by printing money, but did not stop lending. After the fall of the government, lending was stopped and changes were made to the boards of directors of the banks. Then lending started. Now, Bangladesh Bank is working on how to improve the financial health of the banks along with examining them.
An official of Bangladesh Bank said that due to Eid, the pressure to withdraw cash has increased in the banks. For this, they are forced to give money. Otherwise, due to one bank, pressure to withdraw money will start in other banks. In such a situation, there is nothing else to do. However, it has been ensured that this money cannot be used anywhere other than giving it to the depositors.
