Union Bank PLC and First Security Islami Bank PLC have dismissed a total of 456 officers, allegedly appointed under the influence of controversial S Alam Group bypassing established recruitment protocols.
The dismissals include 262 officers at Union Bank and 194 officers at First Security Islami Bank, with both the banks notifying the individuals of their sacking on Monday.
At First Security Islami Bank, 24 of the dismissed officers were branch managers in various branches across Chattogram.
These actions come in the wake of an investigation revealing the extent of irregularities tied to S Alam Group, which previously controlled both the banks for an extended period.
Following the fall of the Awami League-led government in August, the Bangladesh Bank freed Union Bank and First Security Islami Bank from the S Alam Group鈥檚 control.
Both the banks revealed that the Group had allegedly took away substantial funds from the banks, pushing the banks into a severe liquidity crisis.
Union Bank alleged that S Alam Group withdrew approximately Tk聽15,000 crore, accounting for 64 per cent of its total loans.
The Chattogram-based Group reportedly withdrew Tk聽35,000 crore from First Security Islami Bank in names and fictitious names.
The dismissed Union Bank officers were recruited in February 2024 without any formal recruitment examinations, allegedly based on recommendations from S Alam Group.
In letters issued by the banks鈥� HR departments to the dismissed officers, the banks said that although the officers鈥� employment with the banks was terminated, they would remain liable for any harm caused to the banks due to their negligence or other misconduct during their tenure.
At First Security Islami Bank, the current management uncovered serious irregularities involving loans disbursed to S Alam Group鈥檚 owner, Mohammad Saiful Alam.
The bank鈥檚 audits revealed substantial mismanagement in the Chattogram region, prompting the sacking.
Earlier on November 1, Social Islami Bank PLC, another bank which was previously under the S Alam Group鈥檚 control, sacked 579 assistant officers who had been hired without following proper recruitment processes.
SIBL revealed that approximately 2,000 of its 4,750 employees were from Chattogram, many of whom had been appointed without competitive examinations or adherence to formal hiring procedures.
Of the recently dismissed officers, 570 were recruited in 2024, and nine in 2023.
These three banks 鈥� Union Bank, First Security Islami Bank and SIBL 鈥� are now grappling with severe liquidity shortages, struggling to repay depositors.
The central bank has stepped in to provide guarantees, enabling stronger banks to offer liquidity support to these distressed institutions.
