New board to audit all loans taken from Islami Bank in last 7.5 years: Sources

In the first meeting of the new Board of Directors of Islami Bank today (27 August), it has been decided to re-audit all loans taken from the bank in the last seven and a half years when it was under the control of S Alam Group, according to sources.

"An initiative has been taken to find out who have taken loans in this period, in what processes and whether these loans have proper collateral or not," an official of the bank who was present in the meeting told The Business Standard.

The Bangladesh Bank last week dissolved the Islami Bank board that was under the control of S Alam and appointed a new five-member board to oversee the bank's operations. Obayed Ullah Al Masud, who previously served as managing director of both Sonali Bank and Rupali Bank, was made the chairman. 

A director who was present at today's meeting said besides checking the loans, it was also decided to check where the treasury department of the bank has invested money and dollars. 

Apart from this, an initiative has been taken to check whether the manpower that has been appointed in the last seven and a half years has been done in the proper process or not, the director added. 

The board decided to appoint three separate external auditors to this end, the director further said.