Play store
State-owned Sammilito Islami Bank has filed nearly 10,000 cases to recover defaulted loans, with more lawsuits in the pipeline as the bank steps up efforts to recover its troubled assets.
The information was disclosed at a meeting between the Bangladesh Bank governor and the bank’s Bank Resolution Department (BRD) on Thursday. The meeting reviewed progress in loan recovery, restructuring and the bank’s overall operations.
The bank is giving priority to recovering defaulted loans to protect depositors’ interests. Alongside legal action, it is also using settlement-based mechanisms such as the Exit Policy and Alternative Dispute Resolution (ADR).
Meanwhile, a forensic audit aimed at identifying individuals involved in irregularities, corruption, loan fraud and misuse of assets under the bank’s previous ownership and management is at its final stage.
Significant progress has been made in the bank’s restructuring over the past six months under Bangladesh Bank’s supervision. Its board has been reconstituted with independent directors playing a prominent role, while a new chief executive officer was appointed on July 16.
The bank has also finalised necessary adjustments to the ranks, responsibilities and organisational structure of around 16,000 employees.
Efforts are underway to integrate the IT infrastructure of five banks under a unified framework, including their Core Banking System (CBS), SWIFT and RMA platforms.
A common interface has also been introduced for depositors, allowing them to withdraw funds from branches of any of the five banks.
The bank is also rationalising its 780 branches and 1,500 business units, taking into account their locations, business potential, customer service and operating costs.
Bangladesh Bank said the BRD is regularly reviewing progress in loan recovery, case resolution, human resource management, branch and business-unit consolidation, and technological integration.
The central bank expects the measures to improve governance and operational efficiency, accelerate loan recovery and reduce operating costs. It also hopes the initiatives will help channel recovered funds back into productive sectors.
With Tk 35,000 crore in capital, Sammilito Islami Bank began operations as Bangladesh’s largest state-owned Shariah-based Islamic bank. Ensuring transparency, accountability and good governance in the management of its assets and deposits remains a key priority for Bangladesh Bank.