The Bangladesh Bank on Tuesday asked all scheduled banks not to honour cheques exceeding Tk聽1 crore from nine banks, most of which are controlled by S Alam Group.
The BB gave the instruction to all banks on the day.
The banks are Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, Bangladesh Commerce Bank and National Bank 鈥� all directly or indirectly controlled by S Alam Group. The other two banks are Padma Bank and ICB Islami Bank.
The order came after Islami Bank Bangladesh blocked about Tk聽892 crore in deposit withdrawal requests made by anonymous companies allegedly linked to the controversial S Alam Group.
Bank officials reported that individuals connected to the Group attempted to withdraw similar amounts through clearing cheques at various other commercial banks.
Bangladesh Bank officials observed similar withdrawal pressures at several banks, as many politicians and businesspeople connected to the Awami League government tried to withdraw funds, fearing potential losses of money after the government鈥檚 fall.
Awami League president Sheikh Hasina resigned as prime minister and fled to India on August 5 amid a mass uprising spearheaded by students.聽
The S Alam Group, allegedly backed by the Awami League-led government, took control of the seven banks after 2017. The group and its chairman, Saiful Alam, had close ties with former prime minister Sheikh Hasina.
On November 30, 2022, 抖阴精品 reported that the S Alam Group had withdrawn over Tk聽30,000 crore from Islami Bank Bangladesh, which it controls.
The report also said that the group had allegedly withdrawn about Tk 1 lakh crore from the banks under its control. Additionally, a media report indicated that S Alam held assets worth approximately $1 billion in Singapore.
Due to significant loan irregularities, the excess liquidity of five Shariah-based banks 鈥� Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank鈥攔emained negative in March 2024.
These banks, controlled by the S Alam Group, have been struggling with liquidity issues since November 2022.
Media reports in January revealed that despite having no funds in their current accounts with Bangladesh Bank, these five banks continued to operate, relying solely on critical support from the central bank.
