Saudi company now mulls selling Islami Bank shares
Staff Reporter :
Arabsas Travel and Tourist Agency, a Saudi Arabia-based company, is preparing to sell off its shares after removing itself from the directorship of the Islami Bank Bangladesh (IBB), the country’s largest private sector lender.
The Managing Director (MD) of the Islami Bank Bangladesh PLC Mohammed Monirul Moula has confirmed the plan to sell shares of Islami Bank held by Arabsus Travel and Tourist Agency.
“The Saudi company is giving up shares because of good profit.”Mohammed Monirul Moula informed.
The Managing Director of the Bank said that the Saudi company joined with us to establish shariah-based bank in Bangladesh. They have been with us for 40 years. Now they eyeing to go countries where there is no Islamic bank.
This foreign company held 16.09 crore shares or 9.99 per cent of the total shares of Islami Bank, according to the Islami Bank’s report on shareholding of directors and sponsors and was associated with Islami Bank a few days after its establishment.
Earlier, on July 5 this year, the Arabsas Travel and Tourist Agency was communicated to the bank for withdrawing its representation from board of directors of the Islami bank.
Subsequently, the shariah-based bank’s board approved this withdrawal on July 26.
Musaid Abdullah Al-Rajhi served as the director of Islami Bank for a long time on behalf of the company.
Since S Alam Group of Chattogram took control of Islami Bank on January 5, 2017, local and foreign shareholders started to sell their shares in the company. S Alam Group took sole control of the bank by buying these shares as well.
Ibn Sina washed its hands of Islami Bank in April 2018 sold its entire 2.24 percent stake in the bank.
Besides, in June this year State-run non-bank financial institution Investment Corporation of Bangladesh sold its entire shareholdings in Islami Bank Bangladesh.
Previously, it possessed more than 3.3 crore shares, constituting 2.07 per cent of the total stake.
Three corporate shareholders – Armada Spinning Mills, Kingsway Endeavors and Uniglobe Business Resources, jointly hold 11.07 percent shares of Islami Bank, changed their representatives in the bank’s board structure in June.
In the same month, Ahsanul Alam, son of S Alam Group chairman Saiful Alam, was appointed as a shareholder director of the bank as a nominee of JMC Builders in that month.
Meanwhile, the bank is now facing liquidity shortage due to various irregularities even unable to maintain its cash reserve ratio (CRR), according to a recent report by the Bangladesh Bank.
Former Chief Economist of the central bank Mustafa Kamal Mujeri said about the current status of the Islami bank that the condition of the bank has gone to such a level that foreign investors are not able to have confidence. This is an ominous sign for the country.
This will reduce the interest of foreigners to invest.
