Govt looks for S Alam’s finance sources, said Muhith

Finance minister AMA Muhith on Sunday said that they were looking for sources of finance of S Alam Group following the takeover of the Social Islami Bank Limited by the Chittagong-based group.
He said this replying to a query whether the government had taken any move to scrutinise the growing acquisition of private commercial banks by the group.
On October 30, dramatic changes were made to the board and management of Social Islami Bank Limited that allowed S Alam Group to tighten its grip on the bank.
Besides, the group has already established its control over First Security Islami Bank and Union Bank, and bought a significant amount of shares in Islami Bank Bangladesh Limited through a number of companies.
Muhth noted that most assets of the group were bank loans.
Earlier on November 2, he directed the financial institutions division to prepare a report on S Alam Group, which reportedly had blessings of the incumbent government the getting work order for a major power plant.
He gave the directive two days after the group took over the Social Islami Bank Limited on October 30.
Experts, including former adviser to interim government Mirza Azizul Islam, warned that taking over so many banks by a single group was not pleasant news for the banking sector as it exposed lack of good governance. 
Besides, the interest of depositors could not be protected because of nepotism in loan disbursement and recovery process. 

News Courtesy: www.newagebd.net