S Alam Group accused of embezzling Tk 38,000 crore from First Security Islami Bank

S Alam Group has reportedly siphoned off nearly Tk 38,000 crore from First Security Islami Bank through benami loans, according to the bank’s chairman Abdul Mannan. The group’s chairman, Saiful Alam, is said to be the main beneficiary of the embezzlement.

Following a meeting with the Bangladesh Bank Governor on Tuesday, Abdul Mannan informed reporters that three separate audits have confirmed the group took out loans under fake names, as they were unable to secure loans in their own name. The failure to repay these loans has placed the bank in a serious financial crisis.

Bangladesh Bank has initiated efforts to merge five weak banks, including First Security Islami Bank, as part of the response to the crisis. This move has raised concerns over job security for bank employees, while depositors are anxious about the safety of their funds.