FROM PAGE B1

The country’s largest shariah-based bank is now facing fresh uncertainty over the appointment of a new chairman.

“A large share of its defaulted loans is linked to the S Alam Group, with recovery remaining minimal,” said Md Altaf Hossain, acting managing director of the bank.

He told The Daily Star that the bank is trying to recover loans from other borrowers, but progress has been limited as even regular customers have become reluctant to repay.

“Under the current circumstances, the bank is prioritising the prevention of deposit withdrawals, while loan recovery efforts have received less attention,” he added.

At Exim Bank, bad loans stood at Tk 36,724 crore in March, representing 68.58 percent of total loans.

The bank was largely influenced by Nazrul Islam Mazumder, chairman of Nassa Group and former chairman of the Bangladesh Association of Banks (BAB). Loan irregularities and weak corporate governance have pushed the lender into a merger process with four other troubled banks.

Among lenders linked to the S Alam Group, First Security Islami Bank reported NPLs of Tk 60,843 crore, or 97.39 percent of total loans.

Global Islami Bank’s NPLs stood at Tk 14,243 crore, or 97.47 percent, while Social Islami Bank reported NPLs of Tk 30,439 crore, or 80 percent. Union Bank recorded NPLs of Tk 27,102 crore, or 97 percent of its loan portfolio.

These banks were heavily influenced by the S Alam Group, which secured a large portion of loans from them.

AB Bank’s NPLs stood at Tk 19,506.79 crore, accounting for 54 percent of total loans, while National Bank reported Tk 24,305 crore, or 57 percent.

Both lenders faced loan irregularities, governance failures and financial scandals during the Awami League government.

IFIC Bank was dominated by Salman F Rahman, vice-chairman of Beximco Group and an influential adviser to ousted prime minister Sheikh Hasina. Its bad loans stood at Tk 28,174 crore in March, equivalent to 63.36 percent of total loans.

Md Mehmood Husain, independent director and current chairman of the bank, said the volume of defaulted loans has not increased significantly, although the ratio has risen.