Islami Bank Bangladesh, once considered the country’s top financial institution, has fallen into deep crisis following years of alleged irregularities and loan fraud linked to S Alam Group. According to the report, the group and its affiliates defaulted on Tk 57,175 crore in loans, representing 62 percent of the bank’s total non-performing loans as of December last year. The group reportedly took about Tk 70,000 crore in loans under various names, including relatives and paper-based entities, after gaining control of the bank in 2017 through an intelligence agency.

The Bangladesh Financial Intelligence Unit (BFIU) later reported that S Alam Group’s total loans, both direct and indirect, amounted to Tk 105,483 crore. The bank has filed 24 civil and 368 criminal cases against the group, while the Anti-Corruption Commission has also initiated several cases. Islami Bank’s acting managing director said the group has not repaid its loans, and legal recovery efforts are ongoing. The bank has also signed three non-disclosure agreements with foreign entities.

After the interim government removed S Alam’s control, Islami Bank’s board was restructured, reducing total defaulted loans to Tk 92,115 crore by December. However, reports suggest S Alam is now attempting to regain influence through former employees and supporters.