Last year, information about a big loan scam in the bank came to the fore. The bank disbursed loans to companies that were opened in real and false names a few days prior to loan disbursement.
The loans were disbursed at the bank’s Khatunganj and Agrabad branches in Chattogram, Rajshahi branch and Rajshahi, New Market branch in Pabna and Gulshan, Gulshan-2, Farmgate, Nawabpur Road and Baridhara in the capital.
People associated with the banking sector told that the depositors of Islamic Bank got scared after the news of the loan scam was published. As a result its deposits fell. So the bank had to borrow money and take deposits at high interest rates.
Finally, the central bank appointed a supervisor to prevent the bank from deteriorating and to reassure its depositors. Some bank officials said the situation has evolved a bit since then.
Though officials from the central bank visited the Islamic bank over various irregularities, it was learned that it did not take any punitive action. At the same time Bangladesh Bank backtracked as it advised Islamic Bank to take some measures to prevent irregularities.
