Islami Bank Bangladesh is facing challenges in recovering Tk 8,279 crore, which it provided as liquidity support to four banks and one non-bank financial institution (NBFI), raising concerns over its financial stability.

The banks involved are First Security Islami Bank, Union Bank, Social Islami Bank, and Global Islami Bank, while Aviva Finance is the NBFI.

All five entities are controlled by the Chattogram-based S Alam Group, which has also received substantial loans from Islami Bank. Industry insiders suggest Islami Bank has regularly provided liquidity to these institutions to address cash shortages.

The liquidity support breakdown includes Tk 30.43 billion to First Security Islami Bank, Tk 29.82 billion to Union Bank, Tk 10.17 billion to Social Islami Bank, Tk 5.47 billion to Global Islami Bank, and Tk 6.90 billion to Aviva Finance.

As of June, Islami Bank’s total loans exceeded Tk 1740 billion, with deposits standing at Tk 1534.56 billion in December, making the situation a significant concern for the country’s largest deposit holder.