United News of Bangladesh

Union Bank PLC, a listed entity reportedly affected by financial irregularities linked to the S. Alam Group, recorded a staggering per-share loss of nearly Tk 249 in 2024. The summary of the bank’s audited financial report for 2024 was published on Tuesday (November 18) through the Dhaka Stock Exchange (DSE). This massive loss translates to a net deficit of approximately Tk 26,000 crore, according to the audited financial statements. The figure represents an 88-fold increase in the bank’s net loss compared to the previous year, when it reported a net loss of over Tk 292 crore. A review of the published summary highlights the severity of the bank’s financial condition. In response to the crisis affecting Union Bank and four other distressed lenders, Bangladesh Bank (BB) has decided to merge five Islamic banks into a single entity, to be named the ‘Combined Islamic Bank’. Islami Bank customers organise human chain against S. Alam era appointees The five banks involved in the merger are: ·         Union Bank ·         First Security Islami Bank ·         Social Islami Bank (SIBL) ·         EXIM Bank ·         Global Islami Bank According to information from Bangladesh Bank, the 'Combined Islamic Bank' will have a total capital base of Tk 35,000 crore. The government will provide Tk 20,000 crore of this capital, while the remaining Tk 15,000 crore will be raised by converting depositors’ funds into shares of the new bank. The central bank has appointed Nazma Mobarek, Secretary of the Financial Institutions Division, as chairperson of the newly-merged entity. Read more: Capital flight forces merger of 5 Shariah-based banks: BB Governor

Islami Bank Bangladesh PLC is facing a severe financial and managerial crisis due to years of irregular recruitment under S. Alam Group, according to officials. The bank’s management has recently begun efforts to restore order by assessing the competency of thousands of unqualified staff who were reportedly hired without proper procedures. Kamal Uddin Jasim, Additional Managing Director (AMD) of Islami Bank Bangladesh PLC (IBBL), said the bank is incurring a staggering annual loss of over Tk1500 crore due to the unauthorised, large-scale hiring of more than 8,000 unqualified and semi-literate people under the previous management linked to S. Alam Group. Many of these individuals were allegedly appointed in exchange of money and without public job circulars or exams, he said. The cost of maintaining these illegally appointed officers is estimated to be over Tk 1500 crore annually, translating to a total loss of more than Tk 10,000 crore for the bank over the past seven years, according to a Bangladesh Bank report. This massive financial burden, coupled with the looting of over Tk1.0 lakh crore from the bank makes the institution's future financial stability almost impossible, it said. Bangladesh Bank’s investigations also found that several employees had used fake educational certificates. The crisis intensified recently when approximately 90 percent of these employees boycotted a special competency test arranged by the current bank management to re-evaluate their professional competency. In a display of direct defiance, these officers have reportedly engaged in a campaign of slander against the bank, held press conferences, and issued threats to the present management. As part of these activities, the bank's official Facebook page was allegedly hacked on Friday morning, purportedly instigated by ‘outsiders’. A former director of Islami Bank expressed serious concern saying that customer funds may not be safe in the hands of these rebellious employees whose open defiance indicates that bank vaults or cash counters are not secure under their supervision. He warned that the bank may face a severe crisis if swift action is not taken. Officials said the irregular appointments had turned the once internationally reputed bank into a regional institution heavily influenced by the Chattogram-based group. Office space for proposed 'United Islami Bank' approved in Sena Kalyan Bhaban Many of the recruits reportedly spoke only in local dialects inside offices creating communication barriers and deteriorating customer service. They used the power and influence of S. Alam to mistreat colleagues, ignore instructions from superiors, and arbitrarily force transfers to preferred locations, often within the Chattogram region, said an official of HRD section of Islami Bank. Managers or senior officials who attempted to enforce rules were met with false allegations that threatened their posting or job security. The climate of fear created by their power and insolence kept the entire management, including zonal heads in a state of constant anxiety. The officials are still threatening to return to their positions after the next national election, along with S. Alam, said the official. Banking professionals have warned that such large-scale irregularities and fund misappropriation have undermined public confidence in the sector. Masrur Arefin, Managing Director of City Bank, at a progrmme of bankers recently said, “S. Alam alone has destroyed the entire banking sector.” Meanwhile, customers have also voiced frustration online. “The illegal bankers of Patiya are protesting to keep their jobs, but why aren’t they demanding the return of Tk 1 lakh crore allegedly smuggled by their ringleader S. Alam?” wrote Aminul Islam on social media.

Six factories, including power plant, and sugar mills, of Chattogram-based industrial giant ‘S Alam Group’, were shut indefinitely without citing any ground. The factories were S Alam Refined Sugar Industries, S Alam Power Plant Ltd, S Alam Cold Rolled Steels Ltd, S Alam Cold Rolled Steels Ltd (SALAMCRST), S Alam Power Generation Ltd, and Infinity CR Strips Industries Ltd. Of them, edible oil and sugar mills factories were shut by issuing notices and the four others verbally. The notices, signed by Mohammad Borhan Uddin, head of human resources and administration department of the group, were issued in these regards on Tuesday. However, security, delivery and emergency departments of the factories will remain functional as per the decision of the company. Soon after the announcement of the closure, workers staged demonstrations in front of the factories demanding to keep open. The factories are located in Kalapool, Ichhanagar areas on the banks of the Karnaphuli River and Gandamara area under Banshkhali upazila. Read: S. Alam & Co. joins hands with govt. to revive state-owned sugar mills Wishing not to be named, an official of the group said the interim government has given a six month timeframe to the S Alam Group to settle the issues of assets and investments. If the issues are not settled by the stipulated time, the government will move to the International arbitration. Officials of the industrial group expressed reluctance to talk to the media about the matter.

A Chinese national, working at a thermal power plant in Banshkhali upazila of Chattogram district, has gone missing, police said on Thursday. The missing Chinese worker has been identified as G Kingwan, 34, an employee of the S. Alam Group that owns the power plant in Chattogram. Read: Reward announced for info on missing Chinese engineer "He has been missing since Wednesday noon. He was last spotted catching fish in the Bay of Bengal," said Safiul Kabir, officer-in-charge of the Banshkhali police station. The Chinese national, along with his colleagues, went to the site adjacent to the Bay of Bengal on Wednesday morning for pipe installation work. His colleagues informed police about his disappearance around 2.30 pm. "We are on the job," the OC said.