As full-fledged Islamic banks failed customers, they took refuge in shariah-based wings of conventional lenders

Remittances channelled through Islamic banks fell 27 percent year-on-year to $448 million in June 2026, according to a Bangladesh Bank (BB) report.

Islami Bank Bangladesh Ltd yesterday filed a complaint with the Anti-Corruption Commission against 38 people, including former president Mohammed Shahabuddin and S Alam Group Chairman Saiful Alam, over the alleged embezzlement of around Tk 500 crore.

Bank alleges Suprov Composite Knit’s loan limit was raised from Tk 100 crore to Tk 500 crore through irregularities after S Alam Group took control of Islami Bank

Conventional banks outperformed Islamic banks in deposit collection, investment, and asset growth over the past year, mainly due to instability in the Islamic banking sector following the July 2024 uprising.

Parliament yesterday saw fiery exchanges as treasury and opposition lawmakers sparred over the controversy surrounding Islami Bank.

BB spokesperson Arief Hossain Khan made the remark amid widespread criticism and controversy surrounding the appointment of the new chairman of Islami Bank

Tension flared again outside the headquarters of Islami Bank Bangladesh PLC this morning as police dispersed protesting customers demanding the resignation of the bank's newly appointed chairman.

Authorities must not enable a return to failed banking control.

Warns of ‘shadow of fascism’ in Jatiya Sangsad

Scams and irregularities by S Alam Group pushed the shariah-based bank into crisis, as toxic assets continue to surface

In recent months, several groups allegedly linked to S Alam Group tried to withdraw funds from the account using fake vouchers and cheques.

An independent director of Islami Bank and a senior central bank official confirmed the matter to The Daily Star

It happened in just two days. A Nabil Group employee and a relative of its chairman own the firm.

The banking regulator found the involvement of Md Abdul Jalil, independent director and executive committee chairman of the bank, in the loan irregularities.

He alleges that the same political party is engaged in widespread corruption at local levels

The bond will strengthen the bank’s capital base

The adviser made these remarks today during a press conference at the Secretariat in Dhaka

Islami Bank Bangladesh plans to sell the S Alam Group’s stake in the bank to realise dues of around Tk 10,000 crore from the controversial conglomerate.

The bank also intends to invite its former foreign shareholders, including Al Rajhi and the International Finance Corporation, to re-engage with the institution