Islami Bank seeks help from central bank

Islami Bank has sought assistance from the Bangladesh Bank as it has plunged into a massive crisis in the wake of calls by activists of the Shahbagh movement to severe relations with any institution having links with war criminals.

The call by the activists drew huge response with individuals closing their accounts with the bank, internationals banks refusing to continue business with it and readymade garment buyers reluctant to trade through the bank.

The bank, which has been under government watch for its suspected militant funding, has sought assistance from the Bangladesh Bank.

On Feb 5, the day protesters took to the Shahbagh intersection it was demanded that institutions having link with ‘war criminals’ must be banned alongside ensuring death to all war crimes convicts.

The list of institutions included Islami Bank, the bank which was established 30 years ago.

The Shahbagh movement gained momentum as days passed, and its demand spread like wild fire with the bank’s clients ending their business relations with the bank.

A large number of people closed their accounts with the bank at Netrokona.

The bank’s Managing Director Mohammad Abdul Mannan, however, did not consider the matter that important.

Asked about his bank seeking assistance from the central bank, he said it was nothing special but the bank’s regular communications with the central bank.
He said: “Withdrawal and deposit of money and opening and closing accounts are a regular matter. I saw even this afternoon that double the accounts closed this month have been opened. So I won’t say that accounts are being closed for any special reason.”

But a letter he had written to the central bank spoke of concerns – a copy of which has been obtained by bdnews24.com.

Several branches of the bank in Netrokona, Khulna, Cox’s Bazar, Sunamganj, Chandpur and Chuadanga and ATM booths at different places including capital Dhaka were ransacked in the last few days.

Several central and private bankers told bdnews24.com that they were being asked by many about the future of Islami Bank.

Readymade garment exporters said buyers like Tesco, Wal-Mart, JCPenney, H&M, Inditex, Marks and Spencer have expressed their unwillingness to do business with Islami Bank.

Several exporters working for Wal-Mart said the American multinational retail giant has already informed them that it would not accept any export documents of the bank, which has been under huge international pressure for its alleged funding of militant activities.

HSBC UK, Citibank NA and Bank of America had earlier stopped business with Islami Bank.

The Board of Directors of the bank is always dominated by people linked to Jamaat-e-Islami.

According to claims of Islami Oikya Jote leaders, the incumbent Chairman Abu Naser Mohammad Abduz Zaher was a leader of Al-Badr, a vigilante group of Bengalis raised by Pakistani occupation army, in Chittagong.

Islami Bank’s former Vice-Chairman Mir Kashem Ali is a member of Jamaat central committee and now facing trial for war crimes perpetrated during the Liberation War.

He is also the member (administration) of Islami Bank Foundation and a member of Ibn Sina Board of Trustee, an associate organisation of the bank.

Islami Bank’s former Chairman Shah Abdul Hannan is known to be closely linked to the party, which had opposed the nation’s independence from Pakistan in 1971.

Its Deputy Managing Director Syed Abdullah Md Saleh is the sibling of former Jamaat MP from Chouddagram, Syed Abdullah M Taher.

According information on the bank’s website, eight of its 19 local sponsors are dead but it does not have any information on their successors