Now IDB pulls out of Islami Bank board

Multilateral development finance institution Islamic Development Bank (IDB) has withdrawn the directorship of its representative from the board of directors of Islami Bank Bangladesh PLC.

The largest private commercial bank of Bangladesh disclosed the information in its latest report on shareholding of sponsors, directors, foreigners, institutions and shareholders published on its website on Sunday.

Mohammed Monirul Moula, managing director of Islami Bank Bangladesh PLC, did not respond to The Daily Star's phone calls for comment till filing of this report last night.

The newspaper could not get confirmation whether the IDB sold off its entire shares with Islami Bank.

State-run non-bank financial institution Investment Corporation of Bangladesh had sold its entire shareholdings in the bank in June this year.

In July, three firms -- Armada Spinning Mills Limited, Kingsway Endeavors Limited and Uniglobe Business Resources Limited -- sold off their entire stake of over 14 crore shares, or 9.07 percent of the total number of shares.

A few days later, Saudi investor Arabsas Travel & Tourist Agency withdrew its directorship from the board.

S Alam Group had taken over the lender, the country's oldest Shariah-based bank, in 2017.

In July this year the bank informed that Ahsanul Alam, nominated by JMC Builders, was appointed as shareholder director and chairman of the bank. Alam is son of S Alam Group's Chairman Mohammed Saiful Alam.

Islami Bank is now facing a liquidity crisis after loan irregularities of the bank came to light following media reports last year.

The bank had approved Tk 7,246 crore in loans to nine companies that exist only on paper, as per the reports.

In December last year, Bangladesh Bank re-appointed an observer at Islami Bank.