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Download PDF The top 20 defaulters of Islami Bank who share 47 per cent of the bank’s total classified loans include one of its former directors and a sitting vice-chairman of another commercial bank.
Of the two, the Islami Bank former director is also involved with an insurance company while the other is a vice-chairman of a private university.
The total classified loan of Islami Bank up to June 30 this year is Tk 414 crore which is four per cent of the bank’s total outstanding loan.
Of the amount, the top 20 defaulters owe the bank around Tk 194 crore and these two officials share six per cent of the amount. The first five top defaulters share 56 per cent (Tk 108 crore) while Siddique & Co has been listed as the top defaulter with a total Tk 33 crore classified loan.
The bank has recently initiated steps to recover the money and filed a criminal case, to make an instance, against a defaulter who owes about Tk 9 crore.
Islami Bank former director Fazle Azim, who is also the chairman of Takaful Islami Insurance Ltd, took a loan of Tk 4.52 crore for his Azim Garment Ltd.
“The borrower has sufficient collateral and we have been pressing him to repay the money,” Islami Bank Executive President Abdur Rakib told The Daily Star. “If he wants to come back as a member of the bank’s board of directors, we hope he will make the repayment soon.”
Islami Bank has declared Tk 8 crore of the total Tk 19 crore outstanding loan of Quality Timber Ltd defaulted. Haji Afzal Hossain, vice-chairman of Social Investment Bank Ltd (SIBL), owns the company.
Islami Bank high officials recently asked the Bangladesh Bank to withdraw Haji Afzal from the board of directors of SIBL as he has violated the Bank Company Act by becoming a loan defaulter.
The top defaulter of Islami Bank, ship-breaking company Siddique & Co, was given the loan of Tk 33 crore about five years ago. Recently the loan was written off, bank sources said.
A high official of Islami Bank said, “We have filed a case against Siddique & Co and it has pledged to repay the money within three years.”
The second top defaulter of Islami Bank is the Deen Timber, owned by Shamsul Haq, with a classified loan of Tk 30 crore. Identifying Shamsul Haq as a “wilful” defaulter, an Islami Bank official said both criminal and civil cases have been filed against him, but the defaulter also filed a counter case against the bank. “We are yet to recover the money as the cases have not been settled,” the official added.
Joint Silver Traders owes Tk 20 crore to Islami Bank and its owner Babul Akhter is an importer in Jessore. Bank sources said the organisation has been listed as a defaulter this year and presently a negotiation with it is going on. Legal steps will be taken if the negotiation fails, the sources added.
Another negotiation is going on to realise Tk 15 crore defaulted loan by GM Enterprise.
Oshin Kintwear Ltd, which owes Islami Bank Tk 10 crore, appealed to the bank saying they could not repay the money due to failures in exporting products on time.
Arif Gaffar, owner of Makkah Poultry Feeds Ltd, has been absconding following a criminal case filed by Islami Bank to recover Tk 9 crore. Sources said Arif is also listed as a defaulter of a number of other banks.
Islami Bank sources said negotiations are also going on with Giasuddin Traders Ltd that owes the bank Tk 5.30 crore and Andalib Textile Mills Pvt Ltd that owes Tk 5 crore. The owners pledged to repay a portion of the amounts by June next year.
Of the other top 20 defaulters, Faizun Nesa Textile Mills owes Tk 6.45 crore, RM Continuous Galvanising Mills Ltd Tk 5.77 crore, Khadem Traders Tk 5.58 crore, Surma Tubewell Agency Tk 5.26 crore, Liberty Tower Tk 4.81 crore, Paltan Export House Tk 4.38 crore, Famous Printers Tk 4 crore, Entaz Enterprise Tk 3.92 crore, and Daniel Knitwear Ltd Tk 3.79 crore.
Sources said Islami Bank is contemplating legal action against the defaulters as many of them have not responded yet after rescheduling the loans several times.
Abdur Rakib told The Daily Star that in most cases the borrowers invest the money in other work not shown on the applications for loans and later show the enterprises for which the loan was taken as sick.
There has not been recovery of any portion of the bank’s loans from the top 20 defaulters in the last six months, he said, adding, “A number of cases have been filed against the defaulters while process is underway to file fresh cases against others.”
He, however, said most of the cases are facing delay in settlement as the defaulters have filed writ petitions against the charges.
April 2nd, 2008 at 4:50 pm
good
June 12th, 2008 at 2:17 pm
i want my a/c total list