Islami Bank Bangladesh PLC (IBBL) is struggling with a deep financial and administrative crisis following years of irregular hiring practices carried out under the control of S Alam Group, according to senior bank officials.

Kamal Uddin Jasim, Additional Managing Director of IBBL, revealed that the bank has been losing over Tk1,500 crore annually due to the recruitment of more than 8,000 unqualified individuals. These employees were reportedly hired without following standard procedures, such as issuing public job circulars or conducting examinations.

A Bangladesh Bank investigation found that many of these appointments were made in exchange for money and several recruits used fake academic certificates. The central bank’s report estimated the total loss from these unauthorised appointments exceeded Tk10,000 crore over the past seven years.

Adding to the turmoil, the report also cited the alleged misappropriation of over Tk1 lakh crore from the bank, which combined with the high operational costs, has left the institution’s financial recovery prospects in danger.

The current management has launched an internal review to evaluate the competency of these employees and implement corrective measures to stabilise the bank’s operations.

TDD/SHS