Commodities businessman in Chattogram and Mercantile Bank’s Sponsor Director Md Shahabuddin Alam’s company SA Group is on its way to leave the defaulters’ list of banks and financial institutions after repaying almost Tk 365 crore of its loans in the last three and a half years.
Chattogram Money Loan Court, SA Group and concerns sources confirms that SA Group, consists of 18 commercial entities, including SA Oil Refinery Limited, Samanaz Super Oil Ltd, South Eastern Oil Refinery Ltd, Sharjah Oil Refinery Ltd, Kamal Vegetable Oil Ltd, Sharjah Navigation Ltd, SA Paper, and SA Tel, secured a loan facility of Tk 1,200 crore from various commercial banks and financial institutions to manage their commercial and marketing activities.
However, its business slump occurred due to timely non-receipt of gas connections at seven establishments, increased costs of alternative fuels, harassment and non-cooperation from various organizations, banks' refusal to refinance loans for the sake of restructuring, fluctuations in the international prices of soybean and palm oil, increased dollar exchange rates, technological changes, unfair competition.
However, the business faced a downturn due to the failure to obtain gas connections for seven companies on time, increased costs of alternative fuels, harassment and lack of cooperation from various organisations, banks refusal to refinance loans for repayment, fluctuations in the international prices of soybean and palm oil, increased dollar exchange rates, changes in technology, and unfair competition.
This led to non-performing loans in both public and private commercial banks and bank-affiliated financial institutions due to a shortage of working capital, which eventually accrued nearly Tk 2,000 crore in interest.
However, over the past decade, the institution has been repaying loans with the profits earned from commercial activities in flour mills, oil mills, salt mills, water mills, and paper mills. In the last three and a half years, they have paid approximately Tk 365 crore against loans from banks and financial institutions.
Of them, loans from Southeast Bank PLC (SA Oil Refinery), Padma Bank, Bank Alfalah Bangladesh, IDLC Finance PLC, and Mutual Trust Bank PLC have been fully repaid. Additionally, loans from Islamic Bank, National Bank, Bank Asia, Rupali Bank, Dhaka Bank, Uttara Bank, Prime Bank, Agrani Bank, Trust Bank, Janata Bank, One Bank, NCC Bank, and other financial institutions have been regularised.
Officials of the concerned banks said that most of the loan defaulters in Chattogram have fled the country without repaying their debts, while SA Group is emerging from the list of defaulters of various banks and financial institutions, regularly repaying most of their loans.
Regarding this, Rezaul Karim, bench assistant of the Chattogram Money Loan Court, said, “Shahabuddin Alam has repaid approximately Tk 365 crore in loans to various banks and financial institutions from 2021 until this month, fully settling the debts of about six companies during this period. Therefore, the judge ordered to lift his travel ban and return his passport for 45 days.”
Md Shahabuddin Alam said, “We have 36 years of business experience. We were one of the top companies in the edible oil market from 2003 to 2012. Later, we fell behind due to various reasons. Due to the timely non-receipt of gas connections at my seven establishments, even though I had everything, I couldn't do business.
“As a result, my capital was stuck. Later, we collected raw materials from domestic sources and operated the business, paying off nearly Tk 365 crore in loans over the past four years. I have already repaid Tk 80 crore this year.”
“Our goal is to do business, so despite the difficulties, we are paying off our loans. Now, if the government provides us with gas connections for our paper mill and refinery, and if the banks provide new working capital support, then we can create employment for 5,000 more people,” he added.
