শুক্রবার, ২৪ মে ২০২৪, ০৪:০৪ পূর্বাহ্ন




BB orders to show the loans as defaulted and take punitive measures

IBBL hides Tk3,259cr default loan

আউটলুকবাংলা রিপোর্ট
  • প্রকাশের সময় : রবিবার, ৮ জানুয়ারী, ২০২৩ ১১:৪৫ am
Islami Bank Bangladesh Limited IBBL ইসলামী ব্যাংক বাংলাদেশ লিমিটেড আইবিবিএল
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A recent Bangladesh Bang (BB) inspection has found that the Islami Bank Bangladesh Limited (IBBL) has hidden the defaulted status of Tk 3,259 crore disbursed in loan facilities (investment) even though their tenures have expired.

The Shariah-based lender, which is already facing massive criticism due to loan irregularities, provided these loans to three Chattogram-based clients — Century Food Products Ltd, M/S Murad Enterprise and United Super Traders — and they were not used properly, found the probe.

After detecting such irregularities and illegal loan facilities, the central bank recently asked IBBL to show those loans in the bad/loss category and take initiative to recover the overdue loans.

BB also told the bank to take administrative action against the officials who were involved in approving those loans, suggested providing the loans and did not take proper initiatives to ensure their proper use.

IBBL was ordered to take the measures within 15 working days after receiving the letter from the central bank, which was sent last week.

Confirming the matter to The Business Post, BB Executive Director and spokesperson Md Mezbaul Haque said the central bank has asked IBBL to adjust those loans in proper classification as well.

This correspondent made multiple attempts to reach IBBL Managing Director Mohammed Monirul Moula over the phone but he was unavailable until the filing of this report.

According to IBBL’s loan documents, starting from 2019, the bank’s Khatunganj Corporate Branch provided Tk 1,120 crore to Century Food Products; Chaktai Branch provided Tk 1,054 crore to Murad Enterprise, and the Jubilee Road Branch provided Tk 1,085 crore to United Super Traders. These loans are now overdue since the loans’ tenures expired.

A senior BB official, seeking anonymity, told that these huge loans were provided bypassing the banking rules and regulations because these companies are not eligible for this.

At the end of September last year, IBBL’s formally disclosed defaulted loans stood at Tk 4,792.36 crore. If the now disclosed Tk 3,259 crore bad loans are taken into account, the total reaches Tk 8,051.36 crore.

IBBL recently became mired in controversy after some leaked documents and media reports alleged that the bank approved Tk 9,135 crore in loans to 11 ghost and obscure companies.

Soon after, BB carried out an emergency inspection and asked the bank to suspend the disbursement of Tk 9,135 crore in loans to those companies until further notice. The banking regulator in December also appointed an observer to IBBL.

The country’s largest private bank then faced a huge liquidity crisis as many of its clients withdrew their funds. It then took liquidity support from the central bank to meet the shortage under special consideration.

Not only IBBL, but four more Shariah-based banks — Social Islami Bank Ltd, First Security Islami Bank Ltd, Global Islami Bank Ltd and Union Bank Ltd — have also faced liquidity shortages due to loans irregularities and availed of special support of Tk 6,790 crore from BB.

S Alam Group, a Chattogram-based business conglomerate, is the majority shareholder in all five Islamic banks. [The Business Post]




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