Social Islami Bank PLC (SIBL), once a profitable institution, has been deliberately weakened over the past seven to eight years, with both the S Alam business group and Bangladesh Bank remaining equally responsible for its decline, alleged Md. Mahmudul Hasan, lawyer for the bank's former chairman Rezaul Haque.
"For the past seven to eight years, a profitable bank has been systematically destroyed. Despite knowing everything, the bank's officials and the regulatory body remained silent. A specific business group (S. Alam) is responsible for the destruction of the Social Islami Bank. However, the regulatory body, Bangladesh Bank, is 50 per cent responsible".
"Instead of stopping the irregularities, they watched the group's corruption with their eyes wide open. To date, no official or central bank officer has been tried for these offences," he said at a press conference at the National Press Club on Monday.
Mr Hasan pointed out that following the installation of the new government in August, they hoped the looting would stop, but non-cooperation from former Bangladesh Bank Governor Ahsan H. Mansur hindered recovery efforts.
According to him, responsibility was handed over to inexperienced administrators who followed central bank directives without prioritising the bank's interests, leaving SIBL in a precarious state.
The lawyer said the bank's high volume of non-performing loans and heavy reliance on central bank borrowing mean it could take at least eight years to turn around.
"Large industrial groups, including IDB, are interested in investing. With proper management, the bank could recover without relying on printed money from the central bank," Hasan noted.
In a written statement, Dr. Rezaul Haque, also a retired major, accused the current administrators of effectively killing the bank and placing the burden of S Alam's corruption on ordinary investors.
He urged the government to exclude SIBL from merger processes and allow rightful owners to manage recovery.
He also stressed that despite assurances, depositors' money has not been returned, and called for a swift government intervention to restore the bank, protect investors, and save affiliated businesses.
The former chairman urged that the bank be returned to its original owners, along with fresh investment to facilitate its recovery.
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