First News
Volume:7, Number:48
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Business & Finance 1

Selling Islami Bank Shares

| Mahfuza Hridi |

According to its representative, the Islamic Development Bank (IDB) has decided to reduce its shareholding in Islami Bank Bangladesh Ltd from 7.5 percent to 2.1 percent

Islamic Development Bank (IDB), one of the founding sponsors of Islami Bank Bangladesh Limited, sold all of its 86.9 million shares. At a price of BDT31.50 per share, three companies bought shares of Islami Bank worth 2.74 billion BDT. The three companies are: Excel Dyeing, ZMC Builders, and Excel Sure Impex. Sources said all three companies are associated with S. Alam Group. General shareholders could not participate as the trade took place through block trade.

Reliance Brokerage Services was in charge of trading these shares in the stock market. Mohammad Saiful Alam is the chairman of this brokerage service, who is also holding the position of chairman in First Security Islami Bank and S. Alam Group. Excel Dyeing and Printing Company bought the majority of the shares of IDB. Badrunnesa Alam, sister of Saiful Alam is the chairman of Excel Dying and Printing. According to sources, on January 5 board meeting of Islami Bank, the chairman, vice-chairman, and managing director of the bank suddenly tendered their resignations. Bandar M H Hazzar, president of IDB, sent several letters to the finance minister, Bangladesh Bank, and Bangladesh Security and Exchange Commission expressing his concern over these changes. He informed that despite IDB including Saudi Arabia and Kuwait having 52 percent of shares, they are being ostracized when it comes to making any decision for the bank. Lately, it has become a routine to call board meetings on a short notice. This prevents the foreign directors from attending the meetings. The bank is taking big decisions without their attendance. Even the recruitment of the new managing director did not follow any standard procedure.

At the March 30 board meeting of Islami Bank, Arif Suleman, IDB representative and one of the directors of the bank, informed that of their 7.5 percent of share, they intend to keep 2.1 percent of the shares in their hands and sell the rest. Later on May 23, the Dhaka and Chittagong Stock Exchange websites declared that IDB was to sell 86,939,000 shares out of its 120,788,585 shares in hand. On the same day, Excel Dying and Printing, another director company of Islami Bank expressed its intention to buy 32,038,814 shares. The company bought shares worth BDT1.92 billion on the same day. Three more companies bought the rest of the 54,900,000 shares worth BDT1.73 billion on the same day. However, these three companies are not included in the board of directors.

Sources said that Badrunnesa Alam is the chairman and Wahidur Alam Sheth is the managing director of Excel Dying and Printing Company, which bought most of the shares. Wahidul Alam Sheth is one of the directors of First Security Bank. Besides, Sheth is also one of the directors of Reliance Brokerage House. Sirajul Karim has been appointed director of Islami Bank representing Excel Dying. He is a former professor of Bangladesh Agricultural University.

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