SIBL Chairman and AMD resigned

The chairman of Capital Market listed private sector bank Social Islami Bank Limited (SIBL) Mahbub-ul-Alam has resigned. The bank’s Additional Managing Director (AMD) Abu Reza Mohammad Yahiya also resigned.

Abu Reza Mohammad Yahiya has not been going to office since last Sunday after submitting his resignation letter. And Chairman Mahbub-ul-Alam is reported to have submitted his resignation letter and left the country.

After five years of change in ownership and management, Bangladesh Bank found major irregularities in SIBL’s loans. According to the central bank, many of the new loans given by SIBL did not follow proper norms. Many customers have been given money without project only against documents. This money is not coming back now. For this, the bank’s loan of five and a half thousand crores is eligible to be defaulted again. According to SIBL, the bank’s default rate is 5 percent. However, if calculated on the basis of Bangladesh Bank’s inspection report, the bank’s defaulted loan rate will be more than 23 percent.

After that, more irregularities were found in the bank. For this reason, Bangladesh Bank has asked 5 banks including SIBL to submit the data of disbursement and collection of loans of more than Tk 10 crore every day from December 15. The other four banks are Islami Bank Bangladesh Limited, First Security Islami Bank, Global Islami Bank and Union Bank. These banks are owned by a Chittagong group.

A source in the bank said that the two who resigned no longer want to take responsibility for the irregularities. Because of this, the group that took ownership dropped them from their favorites list. In such a situation, they submitted their resignation letter. It is said that a decision will be taken in the next meeting of the bank.

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