Gazi Anowar and Muhid Hasan :
Al Arafah Islami Bank Ltd reportedly disbursed over Tk 1,200 crore in loans amidst significant irregularities.
According to Bangladesh Bank data, three branches of the bank in different districts issued loans totaling Tk 1,216.94 crore against inadequate collateral and falsified documents, complicating recovery efforts as influential borrowers show reluctance to repay.
One notable instance involves the AIBL Agrabad, Chattogram branch, which in November 2008, facilitated a Tk 135.53 crore loan for Messrs. Chittagong Ispat to import a ship from Singapore-based M/s Aerial Maritime Private Limited.
Chittagong Ispat, with collateral valued only at Tk 16.8 crore, is accused of misappropriating the funds.
However, M/s Aerial Maritime is owned by Badiur Rahman, the former chairman of Al-Arafah Islami Bank, who was appointed just a month before the loan was sanctioned.
Similarly, in 2010, the bank approved an initial loan of Tk 85 crore to Messrs. JST Commodities Limited, against a mere Tk 8.5 crore guarantee.
This ceiling was later increased to Tk 669.43 crore for four companies, including M/s Elham Textiles Ltd. and M/s Unilon Textiles Ltd., linked to Shahabul Islam, Rahman’s son-in-law, against a guarantee of Tk 50.54 crore.
Another case of mismanagement arose at the AIBL Banani branch in 2012, where a loan of Tk 411.98 crore was disbursed to Ayman Textile &
Hosiery Ltd. without adherence to regulatory standards. This action led to allegations of money laundering and subsequent repayment failures.
Bangladesh Bank’s spokesperson, Mehbaul Haque, emphasised that routine inspections are conducted and any discovered irregularities will be addressed according to the law. He stated, “We conduct regular inspections. If any irregularities are found, action will be taken according to the law.”
Farman R. Chowdhury, CEO of Al Arafah Islami Bank, maintained that the loans were distributed according to regulations but acknowledged the defaults, stating that efforts are underway to recover the debts.
He mentioned, “We disbursed the loans following all regulations. However, we acknowledge the defaults and are taking effective measures to recover the defaulted loan.”
