Islami Bank hit by ‘Tk 10,000cr losses after years of irregular hiring’

Business Desk :

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 that was 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, reports UNB.
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 Tk One 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’.
However, several hundred officials of Islami Bank blocked Dhaka-Chattogram Highway in Sitakunda on Saturday, to press home their 6-point demand, including reinstatement of terminated employees and withdrawal of ‘officer on special duty’ orders, causing suffering to commuters.
The blockade which began at about 11:30am yesterday near Fauzdarhat continued for about one and a half hours, halting traffic on both sides of the busy highway and causing a massive traffic jam.
The protesters withdrew the blockade at about 1:00pm after police intervention.
Earlier, the bank officials and employees held a human chain along the highway.
Dismissed Islami Bank officials said that around 5,500 Islami Bank officials in Chattogram were facing severe financial and mental distress due to termination and OSD status.
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.
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.