High court orders freeze on 81.92% shares of Islami Bank held by S.Alam
Graphics: Agamir Somoy
The High Court has ordered a three month freeze on 81.92% of the shares in Islami Bank held in the names of various companies affiliated with S.Alam Group.
The High Court bench led by Justice KM Kamrul Kader issued the order on August 30 following a writ petition filed by Islamic Economics Research Bureau (IERB), a sponsor shareholder company of Islami Bank Bangladesh PLC. The court also issued a rule in the matter.
The court asked why Bangladesh Bank’s inaction in allowing 81.92% of Islami Bank’s shares to be concentrated through 24 companies in violation of the Bank Company Act and its failure to take necessary measures to confiscate the shares should not be declared illegal. Bangladesh Bank and the other respondents have been asked to respond to the rule.
Mohammad Shishir Monir, lawyer for IERB, confirmed the court order on Friday, September 4. He said a written copy of the order was published Thursday.
The lawyer also said that under the Bank Company Act, no single group or family can hold more than 10% of the shares of a bank. However, 24 companies affiliated with S Alam are holding a combined 81.92% of the shares in Islami Bank as institutional shareholders. Under the law, Bangladesh Bank is supposed to seize shares exceeding the 10% limit. But it did not do so.
After the Sheikh Hasina led Awami League government, whose activities are currently banned, was ousted from power, Islami Bank filed another writ petition with the High Court in 2025. The petition sought an investigation into how the bank came to own 82.92% of its shares through shareholders of 24 S.Alam Group affiliated companies by using loans or investment funds obtained from the institution.
Following the preliminary hearing of the writ petition, the High Court issued an order in October last year. It directed the Bangladesh Financial Intelligence Unit (BFIU) to submit an investigation report on the purchase of shares in the 24 companies.
After a lengthy investigation, BFIU submitted a 42-page investigation report and an audit report to the court. The reports revealed various details about share fraud at the bank, embezzlement of funds and the establishment of control over the bank by S.Alam Group.
According to investigation related information, in 2017, individuals and companies affiliated with S.Alam Group took control of nearly 72% of Islami Bank’s shares with the direct backing of the then Awami League government while violating several provisions of the Bank Company Act.
