Islami Bank will no longer serve any specific group or party: BB Governor

Bangladesh Bank Governor Mohammad Mostaqur Rahman has asserted that Islami Bank Bangladesh PLC (IBBL) will no longer operate under the influence of any specific group, political party, or family, marking a departure from its functioning during the previous Awami League regime.

The governor made the remarks on Monday during a high-level meeting at the central bank headquarters with the chairman of Islami Bank, four board members, and the top 10 executives of the Shariah-based bank.

“Islami Bank was once an exceptionally strong institution, but it later suffered from a severe lack of good governance,” the governor reportedly told the officials.

He assured that the central bank would provide all necessary support to restore the bank’s stability and maintain its performance, an official present at the meeting told UNB news agency.

The meeting comes amid ongoing protests by thousands of terminated IBBL officials seeking reinstatement. When asked whether the governor addressed these human resource grievances, a meeting attendee confirmed that the issue was not raised during the session.

The Shadow of S Alam Group

According to a Bangladesh Bank report recently submitted to the Anti-Corruption Commission (ACC), the S Alam Group exerted significant influence over eight banks, four of which were directly or indirectly under its control. The group reportedly withdrew Tk 1.9 trillion (Tk 1.90 lakh crore) in loans from these four institutions.

Data from the Bangladesh Financial Intelligence Unit (BFIU) reveal that Tk 933.64 billion (Tk 93,364 crore) was laundered from these banks through fraudulent means and shell companies. Notably, Tk 1.05 trillion (Tk 1.05 lakh crore) was taken from Islami Bank alone.

The report highlights that Saiful Alam Masud, head of S Alam Group, used his influence to secure these funds either in his own name or through various intermediaries.

Financial Performance in 2025

Despite past governance challenges, Islami Bank reported significant operational growth over the last year. By the end of 2025, the bank’s total deposits stood at Tk 1.83 trillion (Tk 1.83 lakh crore), marking an increase of over Tk 220 billion (Tk 22,000 crore) within a single year. Deposits in the agent banking sector also rose by Tk 50 billion (Tk 5,000 crore) to reach Tk 220 billion (Tk 22,000 crore).

In terms of international trade and remittances, the bank collected Tk 760 billion (Tk 76,000 crore) in expatriate income over the past year. During the same period, IBBL’s import and export trade volumes reached Tk 600 billion (Tk 60,000 crore) and Tk 320 billion (Tk 32,000 crore), respectively. The bank’s customer base has expanded to 30 million, with 5 million new customers joining in the last year alone.

While the bank’s non-performing loans (NPLs) stood at a high of Tk 1.06 trillion (Tk 1.06 lakh crore) (58 per cent of total loans) as of September last year, the bank managed to recover Tk 141.59 billion (Tk 14,159 crore) in the final quarter. Currently, the bank’s total defaulted loans stand at Tk 921.15 billion (Tk 92,115 crore), accounting for 47 per cent of its total loan portfolio.