Islami Bank Bangladesh Limited has put up for auction 11 acres of land, including a factory and other property owned by a subsidiary of S. Alam Group.
According to the bank authorities, a loan taken by this S. Alam Group company from Islami Bank’s Khatunganj branch in Chattogram has become non-performing.
Sources from the bank said that S. Alam Refined Sugar Industries Limited has taken multiple investments from Khatunganj branch of Islami Bank since 2010. Over time, the loan amount has grown significantly and the company now owes a total of Tk 9,948.42 crore.
Md. Jamal Uddin, Senior Vice President and Branch Manager, said that although the loan was shown as regular on paper for a long time, key figures of the company have been missing since August 5, 2024. Therefore, under Section 12(3) of the Artha Rin Adalat Act, 2003, the bank has decided to auction off the mortgaged property through legal proceedings.
The auctioned assets includes a building on 33 decimals of land in Dhaka's Dhanmondi, S. Alam Refined Sugar factory on south bank of the Karnaphuli River in Chattogram, nearly 11 acres of land in the Patiya and Bandar mouzas of Chattogram.
According to a bank official, these assets could have a market value between Tk 200 to 250 crore.
The auction notice calls for interested buyers to submit their bids by May 14.
S. Alam Refined Sugar Industries is one of the major enterprises of S. Alam Group. The company’s Managing Director is Mohammad Saiful Alam (Masud), and its Chairman is his brother Mohammad Abdullah Hasan.
Back in 2017, S. Alam Group controversially took control of Islami Bank’s board by strategically purchasing shares and installing loyal directors, under pretext of making the bank “free from Jamaat influence.”
Ignoring internal banking policies, huge loans were then issued in the names of the group’s various subsidiaries.
Multiple investigation reports reveal that the total amount of loans withdrawn in the name of S. Alam Group and its associates reached nearly Tk 1,31,000 crore, which was about half of the bank’s total loans. Against this massive borrowing, collateral of only Tk 4,359 crore was pledged.
Following a mass uprising by students and citizens, Awami League-led government fell on August 5 of last year. After this, Bangladesh Bank dissolved the board of Islami Bank and formed a new interim board.
At the same time, a ban was imposed on transfer and sale of S. Alam Group's shares.
Through these steps, Bangladesh Bank took an active role in restoring transparency and financial discipline in the bank.
AH/SH
