Tuesday, 07 October, 2025
Islami Bank Bangladesh PLC (IBBL), once a prestigious financial institution, is now teetering on the edge of a historic crisis as years of irregular recruitment under the Chattogram-based S. Alam Group wreak havoc on its finances and operations.
Officials reveal that over 8,000 unqualified and semi-literate staff were recruited without proper procedures, public notices, or exams, swelling the workforce from 13,500 in 2016 to 22,000. Many appointments were reportedly made in exchange for bribes, creating a workforce riddled with incompetence and fake credentials. Bangladesh Bank investigations confirmed that several employees used forged educational certificates, raising alarming questions about the integrity of the bank’s operations.
Kamal Uddin Jasim, Additional Managing Director of IBBL, said the cost of maintaining these illegally appointed employees is Tk 1,500 crore annually, accumulating to more than Tk 10,000 crore in losses over the past seven years. These staggering losses, combined with alleged looting of over Tk 1 lakh crore, have pushed Islami Bank’s financial stability to a near-breaking point.
Defiance, Boycotts, and Social Media Hackings
The crisis deepened when 90% of the targeted staff boycotted a competency test arranged by the current management, prompting warnings from officials about the risks to customer funds and vault security. In open defiance, these employees allegedly organized press conferences, issued threats, and launched social media campaigns against the bank.
On Friday, the bank’s official Facebook page was hacked twice by a group identifying as “MS 470 X,” which demanded the reinstatement of dismissed employees. Islami Bank regained control late Friday night, but the hackers’ posts—mocking the current management—exposed the bank’s vulnerability to cyber threats amid the internal upheaval.
Management Under Siege
Former bank directors and banking experts warn that the rebellion among illegally appointed staff has created a climate of fear within the institution. Many of these recruits reportedly speak only local dialects, complicating communication, customer service, and internal management. Employees who attempted to enforce rules faced false allegations and threats, paralyzing decision-making at all levels.
Masrur Arefin, Managing Director of City Bank, said bluntly: “S. Alam alone has destroyed the entire banking sector.” The public’s outrage is also growing, with social media users questioning why illegal employees protest job dismissals while the alleged Tk 1 lakh crore embezzlement by the group remains unaddressed.
From Prestige to Regional Stronghold
Once internationally reputed, Islami Bank is now described as a regional institution dominated by local power interests. The irregular hiring practices under the S. Alam Group not only drained the bank financially but also undermined public confidence in the broader banking sector.
Despite a recent political shift that freed the bank from S. Alam’s control, challenges remain monumental. Thousands of former employees continue to resist accountability, threatening to return to their positions after the next national election, along with the S. Alam group.
The combination of financial hemorrhage, staff rebellion, embezzlement, and cyber intrusions has made Islami Bank a cautionary tale for Bangladesh’s banking industry, highlighting how managerial corruption and political influence can push a major institution to the brink of collapse.
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Islami Bank Bangladesh PLC (IBBL), once a prestigious financial institution, is now teetering on the edge of a historic crisis as years of irregular recruitment under the Chattogram-based S. Alam Group wreak havoc on its finances and operations.
Officials reveal that over 8,000 unqualified and semi-literate staff were recruited without proper procedures, public notices, or exams, swelling the workforce from 13,500 in 2016 to 22,000. Many appointments were reportedly made in exchange for bribes, creating a workforce riddled with incompetence and fake credentials. Bangladesh Bank investigations confirmed that several employees used forged educational certificates, raising alarming questions about the integrity of the bank’s operations.
Kamal Uddin Jasim, Additional Managing Director of IBBL, said the cost of maintaining these illegally appointed employees is Tk 1,500 crore annually, accumulating to more than Tk 10,000 crore in losses over the past seven years. These staggering losses, combined with alleged looting of over Tk 1 lakh crore, have pushed Islami Bank’s financial stability to a near-breaking point.
Defiance, Boycotts, and Social Media Hackings
The crisis deepened when 90% of the targeted staff boycotted a competency test arranged by the current management, prompting warnings from officials about the risks to customer funds and vault security. In open defiance, these employees allegedly organized press conferences, issued threats, and launched social media campaigns against the bank.
On Friday, the bank’s official Facebook page was hacked twice by a group identifying as “MS 470 X,” which demanded the reinstatement of dismissed employees. Islami Bank regained control late Friday night, but the hackers’ posts—mocking the current management—exposed the bank’s vulnerability to cyber threats amid the internal upheaval.
Management Under Siege
Former bank directors and banking experts warn that the rebellion among illegally appointed staff has created a climate of fear within the institution. Many of these recruits reportedly speak only local dialects, complicating communication, customer service, and internal management. Employees who attempted to enforce rules faced false allegations and threats, paralyzing decision-making at all levels.
Masrur Arefin, Managing Director of City Bank, said bluntly: “S. Alam alone has destroyed the entire banking sector.” The public’s outrage is also growing, with social media users questioning why illegal employees protest job dismissals while the alleged Tk 1 lakh crore embezzlement by the group remains unaddressed.
From Prestige to Regional Stronghold
Once internationally reputed, Islami Bank is now described as a regional institution dominated by local power interests. The irregular hiring practices under the S. Alam Group not only drained the bank financially but also undermined public confidence in the broader banking sector.
Despite a recent political shift that freed the bank from S. Alam’s control, challenges remain monumental. Thousands of former employees continue to resist accountability, threatening to return to their positions after the next national election, along with the S. Alam group.
The combination of financial hemorrhage, staff rebellion, embezzlement, and cyber intrusions has made Islami Bank a cautionary tale for Bangladesh’s banking industry, highlighting how managerial corruption and political influence can push a major institution to the brink of collapse.
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