News Analysis: Banking Irregularities: The Rise and Fall of Big Loan Defaulters

Over the past few years, a handful of powerful business groups have been accused of taking away thousands of crores from the country’s banks in ways that have left ordinary depositors and the entire banking system badly wounded.

Among them, the S. Alam Group stands out as one of the most talked-about cases.

According to various reports, the S. Alam Group allegedly obtained between Tk 1 lakh crore and over Tk 2.25 lakh crore from banks such as Islami Bank, First Security Islami Bank, and Janata Bank during the previous government.

Much of this money was reportedly given through weak collateral, shell companies, and strong political backing.

After the political change in August 2024, the Anti-Corruption Commission (ACC) filed several big cases against the group’s chairman, Mohammad Saiful Alam, and his family members.

A large part of their assets has been frozen, and many of their businesses are now under close watch.

How the Government Is Trying to Get the Money Back
The present government is making serious efforts to recover the funds:
• Courts have frozen assets worth more than Tk 35,000 crore, including company shares, bank accounts, and large plots of land.
• Affected banks are filing Artha Rin cases to auction properties.
• The government has sent requests to several foreign countries to trace money that was allegedly moved abroad.
• International legal experts and asset recovery firms have been hired to help bring the funds back.

Finance Minister Amir Khasru Mahmud Chowdhury has made it clear that there will be “no scope for compromise” in these matters. Still, the recovery process is slow and full of legal hurdles.

S. Alam’s Counter Moves
The group has not stayed silent. It has filed an international arbitration case at ICSID against the Bangladesh government, demanding compensation.

Chairman Saiful Alam, who now holds Singapore citizenship, has also tried to renounce his Bangladeshi nationality — something the current government appears reluctant to allow quickly.

Other Big Groups in the Spotlight
S. Alam is not the only one. Several other well-known conglomerates are facing similar allegations:
• Bashundhara Group: Reportedly took around Tk 35,000 crore in loans, with defaults close to Tk 7,811 crore. Many of their shares and accounts have been frozen.
• Orion Group: Loans of about Tk 10,000 crore, with defaults near Tk 1,461 crore. The ACC has filed cases of alleged loan fraud.
• Sikder Group: Loans around Tk 10,233 crore, with defaults of roughly Tk 2,094 crore. Several cases are ongoing.
• Summit Group: Loans of about Tk 1,335 crore under investigation, with multiple bank accounts frozen.

There have also been allegations of close ties between Summit founder Muhammed Aziz Khan and Sajeeb Wazed Joy.

Reports suggest Joy had a personal relationship with the family, including staying at Aziz Khan’s residence in Singapore, and that his influence helped the group secure certain licenses and favours in the power and internet sectors during the previous regime.

Along with a few others, these groups are on the government’s priority list for asset recovery.

Together, they form a big part of the massive non-performing loans in the banking sector, which have now crossed Tk 5.45 lakh crore.

The Pain of Ordinary Depositors
The most heartbreaking part of this entire crisis is that thousands of ordinary depositors are still unable to withdraw their own money.

Many small savers, retirees, and middle-class families have their life savings stuck in these banks.

Despite repeated promises, most of these banks continue to impose strict withdrawal limits or outright refuse payments.

People who kept their money in these banks trusting the system are now suffering the most, while those who looted billions remain largely untouched.

This has completely shattered public trust in the banking sector.

The big question on everyone’s mind is whether the government can actually bring a meaningful portion of this money back. It will not be easy.

It needs strong domestic action, real help from foreign countries, and patience.

In the end, the real victims are the common people whose savings are at stake.

Everyone hopes for transparency and fairness so that such large-scale irregularities do not happen again.

Disclaimer:
This is an analytical piece based on reports published in various national dailies and official statements.