by Sujoy Mohajan in Prothom Alo, Aug 3, 2017 at 14:00 pm
IBBLAfter major shakeup in ownership and management early this year, Islami Bank Bangladesh Limited (IBBL) has shown in recent times signs of decline.
Both its deposits and income have fallen, but loan disbursement has increased — a situation that has created cash crunch for the country’s largest private commercial bank.
This financial status has been reflected in the statement of the IBBL, which is listed with the stock market.
The bank’s aggregate deposit from customers in the first half of this year is the lowest in the past four years.
Between January and June 2017, it received deposits amounting to Tk Tk 22.98 billion, compared to Tk 33.10 billion in the same period of the previous year. The deposit was Tk 35.99 billion in the corresponding period in 2015 and Tk 52.09 billion in 2014.
The bank’s earlier chairman, vice chairman and managing directors were ousted during the meeting of board of directors on 5 January. A Chittagong-based leading industrial group established control over the bank after buying shares in the name of other business entities.
Initially after the changeover in the bank, its share price rose sharply but started declining later on.
As per rules applicable for a listed company to make its financial status public in every three months, IBBL published its statement on income and expenditures on Sunday, the first such report after the January takeover.
It shows the bank’s loan disbursement has jumped to Tk 50.31 billion in the six months of 2017, as against Tk 35.21 billion in 2016, Tk 26.95 billion in 2015 and Tk 22.63 billion in 2014.
“The decline in the bank’s financial status as reflected in the statement cannot be denied. However, it’s a temporary phenomenon. It will improve soon,” the current IBBL chairman, Arastu Khan, told Prothom Alo.
Despite decline in the bank’s growth of deposits, its overall stock of deposits has stood at Tk 704.01 billion as of late June. IBBL is the second largest bank in the country to state-owned Sonali Bank which has overall deposit of Tk 980 billion.
However, IBBL is the largest bank in terms of loan disbursement. The aggregate amount of loans it disbursed is Tk 661.73 billion till late June.
http://en.prothom-alo.com/bangladesh/news/155345/The-decline-of-Islami-Bank-Bangladesh
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