SIBPLC set to sue embroiled S Alam Group

Revamped Social Islami Bank PLC prepares to sue S Alam Group in the Money Loan Court within February to realise default loans worth nearly Tk 70 billion from the embroiled conglomerate.
Nazmus Saadat, acting Managing Director (MD) of the Shariah-based bank, disclosed the strategy while speaking to a group of reporters at the bank’s headquarters in Dhaka on Wednesday.
“We’re also discussing continuously with officials of the S Alam Group for recovering these loans,” the acting MD said in reply to a query.
He also said these loans covering both funded and non-funded assets are still in regular status.
As part of the legal action, Social Islami Bank will file cases against 40 accounts of the group of businesses, according to a senior official of the bank.
Meanwhile, the reconstituted board along with top management of the Shariah-based bank is now working to improve their financial health by intensifying recovery efforts and strengthening deposit mobilisation for a rebound.
Under the moves, the bank has already formed taskforces at both headquarters and branch level to gear up the ongoing recovery drives across the country.
“We’re trying to strengthen our recovery drives jointly,” the top executive of the bank said, adding that Social Islami Bank is now trying to reduce the amount of non-performing loans (NPLs) through boosting the recovery drives.
“We’ve already taken measures to avert any fresh NPL buildup in the near future,” he notes.
Social Islami Bank has already been able to recover unpaid loans amounting to Tk 25 billion since the August-05 political changeover till January 28, the acting MD said, adding that they have recovered the money from loan defaulters, written-off loans and over-dues.
The bank is focusing non-funded businesses, including letter-of-credit (LC) ones, which will further help improve the bank’s cash flow.
Besides, the private commercial bank has already rebranded its deposit products to attract general depositors to deposit their hard-earned money with the bank, according to the executive. “We’ve also planned to launch a fresh campaign by the next month to mobilise deposits,” he said to another query.
Social Islami Bank has also emphasised small and medium enterprises (SMEs) and micro-financing to help strengthen the ongoing financial- inclusion initiatives across the country.
As part of the moves, the Shariah-based bank opened three agent- banking outlets Wednesday in different parts of the country on the same grounds. “We’re enhancing our agent-banking operations aiming to bring more unbanked people into the banking network,” the executive explains. Currently, Social Islami Bank is running business with 180 branches, 236 sub-branches, 377 agent outlets, and 224 ATM booths located in both urban and rural areas of Bangladesh.
The bank has already resumed its normal banking activities, the acting MD said, adding that it will return into previous position soon.
Founded in 1995, Social Islami Bank introduced three-tier banking model (formal, non-formal and voluntary), for the first time in Bangladesh aiming to bring fresh dynamism in welfare banking targeting eradication of poverty with a motto of ‘Working Together for a Caring Society’.    https://today.thefinancialexpress.com.bd