SIBL chair, AMD quit

Social Islami Bank Ltd (SIBL) Chairman Md Mahbub ul Alam and its Additional Managing Director Abu Reza Md Yeahia have resigned from the Shariah-based private commercial bank.

After submitting their resignation letters, Mahbub left the country last week and Yeahia stopped coming to the office since Sunday, multiple bank officials confirmed to The Business Post, requesting anonymity.

The Business Post tried to reach both of them over the phone but they were found switched off.

SIBL Managing Director (MD) Zafar Alam was also unavailable for comments.

Mahbub and Yeahia previously served as the MD and Additional MD, respectively, at the Islami Bank Bangladesh Ltd (IBBL), which recently faced controversy and criticism due to massive loan irregularities.

Before joining SIBL as chairman, Mahbub also served at the First Security Islami Bank Ltd (FSIBL) as an adviser for about a Year.

Industry insiders said that IBBL disbursed the huge amount of loans to obscure business groups when they were in the bank’s management teams.

Recently, IBBL, FSIBL and SIBL faced massive criticism after the three Shariah-based lenders approved huge amounts of loans to Nabil Group violating banking rules and regulations.

S Alam Group, a Chattogram-based business conglomerate, is the majority shareholder in all three banks.

On May 30 last year, SIBL — at its 481st board meeting — approved Tk 1,120 crore (both funded and non-funded) in loans to Nabil Feed Mills Ltd, Nabil Naba Foods Ltd and their associate companies.

A Bangladesh Bank observation report mentioned that SIBL had eased its regulations and conditions for approving loans to businesses under the Nabil Group, and termed the loans risky. The lender had lowered LC commission and provided relief from depositing collateral and personal guarantee, said the report.