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Cenbank Revamps Boards of S Alam Group-Controlled Banks to Curb Influence
The Bangladesh Bank took decisive action yesterday by reconstituting the boards of directors for two banks under the control of the Chattogram-based S Alam Group. Additionally, the central bank announced plans to restructure the boards of two other banks by next week to reduce the group’s dominant influence.
In a move to ease banking operations, the central bank also assured the business community that it would soon lift the restrictions on opening letters of credit (LCs) imposed on these banks.
In a related development, the newly reformed board of Islami Bank Bangladesh has initiated a comprehensive re-audit of all loans issued since the S Alam Group gained control of the bank.
The central bank has appointed five-member boards for both Global Islami Bank and Union Bank. Nurul Amin, former managing director of Meghna Bank, will chair the Global Islami Bank board, while Fariduddin Ahmed, former managing director of Islami Bank, will head the board of Union Bank.
Bangladesh Bank has stated that the boards of First Security Islami Bank and Bangladesh Commerce Bank will undergo restructuring within a week.
Moreover, the central bank restructured the board of United Commercial Bank (UCB), appointing notable figures including former Bangladesh Bank executive director Sajjad Hossain, former Agrani Bank deputy managing director Md Yusuf Ali, and chartered accountant Obaidur Rahman FCA. Shareholder directors Sharif Zahir and Md Tanvir Khan were also appointed, contingent upon their resignation from positions on the boards of National Finance and Eastland Insurance Company, respectively.
Earlier last week, the central bank reconstituted Islami Bank’s board, liberating it from S Alam Group’s control.
The new board members of Global Islami Bank include former Bangladesh Bank executive director Jamal Mollah, former Islami Bank deputy managing director Nurul Islam Khalifa, Dhaka University professor Abu Hena Reza Hassan, and chartered accountant Mahmud Hossain. The new Union Bank board includes former Bangladesh Bank executive director Humayun Kabir, former RAKUB deputy managing director Saiful Islam, Dhaka University professor Shahidul Islam Jahid, and chartered accountant Sheikh Jahidul Islam. All have been appointed as independent directors, according to official circulars issued by the central bank.
In an emergency meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Bank Governor Ahsan H Mansur announced the restructuring of banks associated with S Alam Group.
Following the meeting, BGMEA Senior Vice-President Abdullah Hill Rakib shared that the central bank had agreed to launch a Tk3,000 crore soft loan package and continue Export Development Fund (EDF) activities, with a prompt resolution of the LC issues for the six affected banks.
Several meeting participants confirmed that the central bank would maintain the EDF and provide regular loans from the existing $3 billion fund. This follows a week after the Bangladesh Bank suspended LC operations at six S Alam Group-controlled banks due to corruption and irregularities, halting related import and export activities.
BGMEA leaders emphasized the detrimental impact of recent civil unrest on the garment sector and urged the central bank to support sustained export flow and global competitiveness.
Audit of Islami Bank Loans
In the first meeting of the newly restructured board of Islami Bank, a decision was made to re-audit all loans issued during S Alam Group’s control of the bank. An official present at the meeting stated, “We will scrutinize who received loans over the past seven years and the processes involved, with the goal of verifying collateral adequacy.”
Last week, the Bangladesh Bank dissolved the S Alam Group-controlled board of Islami Bank, appointing five independent directors in its place. Alongside loan audits, the board will review the bank’s Treasury Department investments, including those in money markets and foreign currencies.
The board will also evaluate recruitment practices from the past seven and a half years. Three external auditors will be appointed to assist in these reviews.
Before S Alam Group fully assumed control of Islami Bank on January 5, 2017, the group already had a loan exposure of approximately Tk4,000 crore with the bank’s Khatunganj branch in Chattogram. Post-takeover, the group’s borrowing from Islami Bank surged significantly.
Half of Islami Bank’s Loans Tied to S Alam Group
As of August 18, 2024, Islami Bank’s total loan portfolio stands at Tk1.5 lakh crore, with deposits totaling Tk1,53,274 crore. Of these loans, Tk74,972 crore—roughly half—has been traced back to S Alam Group, with Tk14,427 crore directly under the names of seven S Alam Group companies, according to central bank sources and Islami Bank documents.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
