Social Islami Bank PLC, under S Alam Group鈥檚 control, concealed approximately Tk聽7,853 crore of defaulted loans in its 2023 annual report, according to a Bangladesh Bank report.
The bank reported only Tk聽1,716 crore in defaulted loans, while the actual figure was Tk聽9,569 crore.
Additionally, the bank was supposed to maintain Tk聽9,281 crore in provisions, but reported only Tk聽1,153 crore, hiding Tk聽8,128 crore in provisions.
Before finalising SIBL鈥檚 2023 report, a central bank team inspected five branches and reviewed off-site reports from five randomly selected branches.
Despite identifying significant data manipulation, the Bangladesh Bank approved the reported defaulted loans of Tk聽1,716 crore.
Senior BB officials allegedly had aided the bank in obscuring these figures for illicit gain, while junior officials were reportedly pressurised to underreport the defaulted amounts.
The bank declared a 10-per cent dividend for 2023, with 5 per cent in cash and 5 per cent in stock, despite the huge NPL.
The inspection also revealed a required provision of Tk 1,708 crore for investments stuck due to court orders, but the bank reported only Tk聽40.97 crore, resulting in a provision deficit of Tk聽1,667 crore.
Furthermore, the required provision for investments and other assets from the offshore banking unit was Tk聽154 crore, but the bank reported only Tk聽20 crore.
In 2017, S Alam Group took over Social Islami Bank.
Currently, the bank鈥檚 founding directors are staging protests to regain ownership.
The bank鈥簊 2023 financial report showed total deposits of Tk聽35,739 crore and investments of Tk聽36,082 crore as of December 30, 2023.
Bank officials alleged that most loans created after 2017 were acquired by S Alam Group and its affiliates.
