6 S Alam banks restricted for loans

Staff Correspondent: Bangladesh Bank has imposed a ban on disbursement of loans to 6 banks under the control of S Alam – Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami and Bangladesh Commerce Bank.
This information was gained in a letter of Bangladesh Bank which imposed the ban.

It is said in the letter that these banks will not be able to distribute new loans until further instructions. Can’t even renew previous loans. However, agriculture, working capital, SMEs, loans against deposits and incentive packages can provide up to Tk 5 crore. If it is more than Tk 5 crore, the approval of the central bank should be taken.
Saiful Alam Masud (S Alam), the leader of S Alam Group, became a powerful person in the banking sector with the help of the government during the last 15 years of rule of the Awami League, which was removed in a mass coup.
It is alleged against him that he used the connivance of Bangladesh Bank, the regulatory body of the banking sector, and various agencies of the government to take over banks, obtain licenses of multiple banks, and withdraw thousands of crores of taka under the guise of anonymous loans from various banks.