NN Online:
Islami Bank (IBBL) PLC plans to raise Tk 20,000 crore from the stock market through the issuance of new shares. Additionally, shares seized from S Alam Group by Bangladesh Bank (BB) will be sold to investors to boost capital, aiming to ease the ongoing cash crisis and bolster money circulation.
Islami Bank Chairman Md Obayed Ullah Al Masud made the announcement during a press conference held at the central bank on Monday. BB Governor Dr Ahsan H Mansur was present.
The governor highlighted that the S Alam Group had taken 80 per cent of Islami Bank’s loans after taking over ownership in 2017.
He said, “Considering its assets, Islami Bank is larger than 10 other problem-prone banks combined. Once Islami Bank makes a turnaround, it will create significant space for the economy to recover.”
Chairman Al Mansur said S Alam Group’s activities had severed the bank’s correspondence relationships with foreign banks and the original foreign sponsors of the bank.
“The current board has re-established communication with the former foreign sponsors from the Middle East and IFC to strengthen their involvement with the bank,” he added.
Efforts have also been made to recover Islami Bank’s assets from companies linked to S Alam Group, including opening Letters of Credit (LCs) with a 100 per cent LC margin requirement.
He said S Alam Group and S Alam Limited are separate entities.
BB Governor Dr Mansur reiterated the government’s policy of not shutting down companies, regardless of ownership, as investments and employment generated by these entities are vital for the economy.
“All these industries contribute to GDP and economic growth, so the central bank is focused on ensuring the production sector continues to operate smoothly,” Dr Mansur stated.
Chairman Al Mansur expressed optimism about Islami Bank’s future, saying, “The bank will be stronger than before within the next two years.”