Islami Bank's 131.89 crore shares blocked, free float limited to 11.43 crore shares
In its monthly shareholding report, the bank stated that the shares have been blocked following an order from the BSEC issued on 24 August
A total of 131.89 crore shares of Islami Bank, representing 81.92% of the bank's total shares and owned by S Alam Group, have been blocked, according to the bank's September shareholding report.
The report was published on the bank's website on Monday.
In its monthly shareholding report, the bank stated that the shares have been blocked following an order from the Bangladesh Securities and Exchange Commission (BSEC) issued on 24 August.
The BSEC's order came following a request from Bangladesh Bank on 20 August. The central bank had urged the BSEC to freeze the shares owned by six individuals, including S Alam Group Chairman Saiful Alam Masud, and 56 institutions associated with the group.
Currently, only 18.40 crore shares of Islami Bank are available for trading on the Dhaka Stock Exchange, making up 11.43% of the bank's total shares, according to the report.
Meanwhile, on Tuesday, the bank's share price was Tk 56.40, bringing the total value of shares held by S Alam to Tk7,438 crore.
On 22 August, Islami Bank was freed from the grip of the controversial S Alam Group after nearly seven years, with the Bangladesh Bank appointing a new five-member board of directors to oversee the bank's operations.
On 25 September, the BSEC asked the Dhaka bourse to investigate the unusual price hike in Islami Bank shares which surged over 116% to Tk70.40 after the fall of the previous government till 25 September.
In an order, the commission noted that the price and volume of Islami Bank shares have fluctuated significantly in recent times, which appears unusual and suspicious.
According to the BSEC order, the country's premier bourse will investigate the trading of Islami Bank shares from 6 August to 25 September to identify the reasons behind such unusual price and volume movements, including potential market manipulation, insider trading, and other market abuses.
According to sources from the central bank and documents from Islami Bank, as of 18 August 2024, the total loan portfolio of Islami Bank stood at Tk1.5 lakh crore, with total deposits amounting to Tk1,53,274.
Of these loans, Tk74,972 crore has been identified as benefiting the S Alam Group, which constitutes half of the total loans.
The loans amounting to Tk14,427 crore were directly under the name of seven S Alam Group companies.