TK 7,246CR loans to 9 firms: BB probing ‘breach of rules’ at Islami Bank
Bangladesh Bank has begun an investigation into Islami Bank Bangladesh Ltd for disbursing Tk 7,246 crore in loans to nine companies this year grossly violating banking rules.
The central bank yesterday formed a probe body comprising three officials of the Department of Banking Inspection, said a Bangladesh Bank high official.
The official said, "The body started its enquiry at the bank's head office and would afterwards go to its branches involved in the scam."
Bangladesh Bank did not set a deadline for the probe body but it was asked to complete the investigation in the quickest possible time, the official said.
The central bank high-ups yesterday also called in Islami Bank Managing Director Mohammed Monirul Moula and directed him to take immediate action against the people responsible.
Despite repeated attempts, Monirul could not be reached for comments.
Of the disbursed amount, Tk 2,460 was disbursed in the first 17 days of this month.
Sources in Islami Bank said that most of the nine companies were sister concerns of Rajshahi-based Nabil Group.
Officials at Islami Bank said that most of the companies had mentioned fake address in their loan application forms.
Of the total amount disbursed, Islami bank's Gulshan Circle-2 branch gave Tk 1,011 crore to Nabil Grain Crops in July even though the company had opened an account with the branch in March. The firm gave an address in Banani which turned out to be fake.
The allegations against the country's biggest private bank, in terms of deposits and loans, surfaced five years after a Chattogram-based business group took over the bank violating norms.
The group had appointed some representatives of "companies" under its umbrella as directors of the bank. The "companies" existed only on paper.
Marts Business Ltd, which took out a loan of Tk 981 crore from Islami Bank between November 1 and November 10 this year, gave a fake address.
Similarly, Naba Agro Trade International gave a fake address in Rajshahi to take out Tk 1,124 crore in loans between April and July this year.
International Product Palace got Tk 545 crore from the bank within just three days of seeking the loans in September. It too gave a fake address.
Islami Bank, which follows Shariah-based principle, calls loans investments. The bank requires vouchers of products and services against its investments in a firm.
Islami Bank did not collect any vouchers in most of the cases concerned and gave out loans following instructions of senior management and the board of directors, sources said.
Md Aminul Islam, managing director of Nabil Group, could not be reached over the phone for comments.
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