S. Alam Group’s Default Loans in Islami Bank Exceed Tk 57,000 Crore

 

S. Alam Group’s Default Loans in Islami Bank Exceed Tk 57,000 Crore

Islami Bank was once considered one of the top-performing financial institutions in the country. However, in 2017, control of the bank was taken over by the S. Alam Group through the influence of an intelligence agency. Since then, massive amounts of loans were withdrawn—both under official and anonymous entities—until August 5, 2024.

Due to years of irregularities, loan scams, and financial manipulation, the bank is now facing a severe crisis. By December 2025, total defaulted loans stood at approximately Tk 92,000 crore. Of this, Tk 57,175 crore—about 62%—is linked to 15 companies associated with the S. Alam Group and its owner, Saiful Alam.

Reports indicate that the group took nearly Tk 70,000 crore in loans from Islami Bank. These loans were not only taken under their own company names but also through relatives and shell (paper-based) companies. Meanwhile, a report from the Bangladesh Financial Intelligence Unit (BFIU) revealed that total loans linked to the group could be as high as Tk 105,483 crore.

During the previous government’s tenure, many of these loans were shown as regular despite being defaulted. The interim government later reclassified them as non-performing loans. However, under the current administration, actions against the group appear to have slowed, raising concerns about whether justice will ultimately be served.

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Major Defaulting Companies

Among the top 20 defaulters of Islami Bank, 15 are linked to the S. Alam Group. Ownership of these companies includes Saiful Alam, his son Ahsanul Alam, son-in-law Belal Ahmed, and other family members.

The largest default comes from S. Alam Super Edible Oil, with Tk 13,040 crore in unpaid loans. Other major defaulters include:

• S. Alam Refined Sugar: Tk 10,281 crore
• S. Alam Vegetable Oil: Tk 10,113 crore
• Sonali Traders: Tk 4,853 crore
• Chemon Ispat: Tk 3,592 crore

Several other companies—including Infinia CR Strips, S. Alam Cold Rolled Steels, and Karnaphuli Foods—also have defaulted loans exceeding Tk 1,000 crore each. Some entities were found to exist only on paper, indicating fraudulent activities.

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Money Laundering Allegations

Investigation sources suggest that loans taken for specific investments were diverted to repay other debts, which constitutes a violation under money laundering laws. Legal action has already been initiated in some cases.

Indirectly Linked Entities

In addition to direct borrowers, five more companies are allegedly linked indirectly to the S. Alam Group. These entities account for around Tk 5,697 crore in defaulted loans.

Legal Actions

Islami Bank has taken multiple legal steps against the group. So far, 24 cases have been filed in loan courts, and 368 cases under the Negotiable Instruments Act. The Anti-Corruption Commission (ACC) has also launched separate investigations.

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Current Financial Condition of the Bank

After the interim government took charge, the bank’s board was restructured, removing S. Alam Group’s control. This revealed the actual financial condition of the institution.

By September 2025, defaulted loans had exceeded Tk 106,000 crore. However, by December, the figure dropped to Tk 92,000 crore. The bank is now gradually stabilizing and recovering from the crisis.

Attempt to Regain Influence

Recent reports suggest that the S. Alam Group is attempting to regain influence within the bank. Allegedly, they are organizing protests through former employees who were recruited during their tenure.

So far, around 4,685 employees have been dismissed, many of whom were reportedly hired without proper procedures.

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