B Mirror Repot : Evidence has emerged of long-standing, serious irregularities and extreme mismanagement surrounding a large investment loan provided by Islami Bank Bangladesh PLC, a listed company on the stock market, to Ananda Shipyard.
For nearly a decade and a half, the loan limit was increased repeatedly in stages without adequate verification, risk assessment, or effective supervision. Even after the loan became classified as non-performing, no strict legal action was taken; instead, it was strategically shown as “regular.” This picture has become clear from an analysis of documents from Bangladesh Bank and Islami Bank, as well as information from relevant officials.
According to bank sources, in 2006 Ananda Shipyard was initially approved a non-funded investment facility of only BDT 51.04 crore. Just 10 months later, in 2007, this limit was abruptly increased to BDT 431.30 crore, a large portion of which consisted of refund guarantees. Within the same year, another revision raised the investment limit to BDT 548.01 crore, along with an additional BDT 25 crore in working capital facilities.
Based on internal bank documents and statements from officials, these approvals were granted without verifying the project’s actual progress, financial capacity, or the quality of collateral. The decisions were taken during the tenure of then Chairman Abu Naser Muhammad Abdul Zahir and Managing Director M. Fariduddin Ahmed. Even in 2008, without any project appraisal, approval was given under the same investment limit for the construction of four additional ships.
The investigation further revealed serious negligence in the management of refund guarantees issued for foreign buyers. Under the contract, the guarantees were supposed to be renewed at least 42 days before expiry, but the bank failed to do so. As a result, when German buyers invoked the guarantees, Islami Bank was forced to pay BDT 112.56 crore.
According to regulations, this amount should have been treated as forced investment against the client, but the bank instead transferred it to a long-term HPSM (Hire Purchase under Shirkatul Melk) account. Bangladesh Bank has identified this as a serious regulatory violation. It is alleged that part of this money was used by the client to construct a luxury building with a helipad in Tongi, which was not shown as collateral against the loan.
Internationally, in the shipbuilding sector, it is customary to take collateral worth at least double the loan amount. In contrast, Islami Bank accepted collateral worth only BDT 10 crore against a total exposure of BDT 588.50 crore. According to the bank’s latest internal valuation, the current market value of that collateral is only BDT 71 crore.
While a maximum grace period of 24 months is generally allowed for installment payments, Ananda Shipyard was granted an unprecedented 60-month grace period. Through this mechanism, the loan was shown as “regular” for years, a practice known in banking terminology as “evergreening.”
After failing to recover the loan, Islami Bank filed a money loan lawsuit against the client in 2015. However, the bank itself later assisted multiple times in keeping the case stayed, effectively stalling the legal process.
According to Bangladesh Bank data, as of December 31, 2025, Ananda Shipyard’s total outstanding liability to Islami Bank stood at BDT 1,280 crore, of which the principal investment loan amounted to BDT 426 crore. Bangladesh Bank Assistant Spokesperson Mohammad Shahriar Siddiqui stated that Islami Bank violated almost all existing laws and regulations in managing this loan.
