The interim government has formed an eight-member working committee to implement the merger of five Shariah-based banks.

An internal audit found Syed Waseque Md Ali’s involvement in loan irregularities with S Alam’s companies

First Security Islami Bank (FSIB) has fired a newly appointed deputy managing director over his alleged involvement in irregularities at his previous place of employment, Social Islami Bank Limited (SIBL).

As much as 89.3 percent of the credit extended by First Security Islami Bank, when controlled by the major Awami League beneficiary S Alam Group, to AL-affiliated Sikder Group by violating banking rules and regulations has become defaulted.

Four more shariah-based banks have been found to have taken emergency funds, which are usually taken during extraordinary circumstances, in an attempt at dressing up their balance sheet for last year.

Bangladesh Bank yesterday re-appointed an observer at Islami Bank and dispatched an observer for the first time at First Security Islami Bank (FSIBL) -- the two Shariah-based lenders where Chattogram-based business giant S Alam Group has significant stakes.

Information about S Alam Group has bought a bank with money from another lender and taken controlling stakes in other banks is surfacing now, but people in the banking sector and involved in economic policy-making knew about the developments, said Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh.

Islami Bank, Social Islami Bank and First Security Islami Bank lent about Tk 9,500 crore under suspicious circumstances, as reported by different media. Of the sum, Tk 7,246 crore has been taken from Islami Bank alone.