Social Islami Bank allegedly hid Tk8,000 crore in defaulted loans with central bank’s help
ACC forms probe team to investigate the alleged irregularities
A secret report from Bangladesh Bank has revealed that the central bank had facilitated Social Islami Bank in concealing defaulted loans amounting to Tk7,926 crore.
According to a letter issued by the ACC Headquarters to the central bank on Tuesday (14 January), the anti-graft body formed a three-member team to investigate the alleged irregularities at Social Islami Bank.
The letter instructed relevant officials at the Bangladesh Bank to provide all necessary information to the ACC investigation team by 20 January to facilitate a thorough investigation.
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According to a Bangladesh Bank inspection report, Social Islami Bank's defaulted loans reached Tk9,568 crore at the end of December 2023. However, the bank reported only Tk1,644 crore to the central bank.
The central bank's inspection team conducted an on-site review of five main branches, 10 branches on an off-site basis, and seven branches outside Dhaka until 31 December last year, uncovering these irregularities in the bank's financial statements.
An official within the inspection team told The Business Standard that the actual amount of irregularities identified was to approximately Tk8,000 crore, with only Tk64 crore being reported.
The official further claimed that senior officials within the Bangladesh Bank, including the additional director, director, and executive director, initially disagreed with the downplayed reporting of irregularities.
"However, they were allegedly pressured by then-Deputy Governor Khurshid Alam to submit a report that would allow for a 10% dividend declaration," he added.
