First Security Islami Bank is now practically bankrupt. Customers are unable to withdraw money even if they want to. The bank has recoverable loans of Tk 51,250 crore from 196 institutions. 95 percent of this is now defaulted. The most alarming aspect is that S Alam Group alone has withdrawn about Tk 40,000 crore in the name of a fake company.
When asked about this, Bangladesh Bank spokesperson and executive director Arif Hossain Khan told Daily Industry, "The governor is taking the issue of First Security Islami Bank very seriously. The central bank is keeping the overall situation under control to maintain customer interests and financial stability. However, overnight changes are not possible. Strict steps will be taken to recover unpaid loans. No one will be exempted.” The central bank continues to monitor the bank's financial condition. At the same time, preparations are  underway to strengthen legal and administrative measures to recover defaulted loans. An internal report on 'Investment Monitoring and Recovery' of the bank dated March 2025 shows that the total loans disbursed so far are about Tk 61 thousand crore; of which Tk 58 thousand 182 crore are defaulted. The bank's capital deficit now stands at Tk 17 thousand 700 crore.Branch managers said that it is not possible to pay any customer as per their demand. Some are getting Tk 5,000, some Tk 10,000, that too after a long wait. This is increasing panic among customers.
The main reason for this situation is the bank's anonymous loan distribution, fake documents, overvalued collateral and completely uncontrolled investments. When asked about this, the bank's chairman Muhammad Abdul Mannan told Daily Industry, 'An organized group has emptied the bank. They have been withdrawing money day after day using the name of the head of government. They are still continuing their nefarious activities.'
The list of defaulters includes the names of many big groups and companies in the country. The defaulted loans of Deshbandhu Group, a major borrower of First Security Islami Bank's Gulshan branch, have now exceeded Tk 1,168 crore. Deshbandhu Group's subsidiaries include Deshbandhu Sugar Mills Limited, Deshbandhu Food and Beverage Limited, Deshbandhu Textile Mills, Southeast Sweaters Limited and MR Trading. These loans have been deemed defaulted due to non-repayment of invested money for a long time.
Another big defaulter of First Security Islami Bank is Sikder Group. The amount of unpaid investments of this group stands at Tk 810 crore. The loans were distributed in the name of various institutions owned by Ron Haque Sikder, Rick Haque Sikder and Dipu Haque Sikder, sons of the late Zainul Haque Sikder, former chairman of Sikder Group. These have also become defaulted loans due to non-repayment of the money for a long time.
Other important defaulters of the bank include MRC Business House, whose defaulted loan amount is around Tk 875 crore. Globe Traders' outstanding amount stands at Tk 802 crore. Tasneem Flour Mills' loan amount is Tk 725 crore and Md. Nurunnabi's defaulted loan amount is Tk 654 crore.
Other defaulters at the Jubilee Road branch include Safran Trade International (Tk 634 crore), Image Trade International (Tk 598 crore) and Eco Trade Corner (Tk 578 crore). Notable among the defaulters in the Agrabad branch is SA Oil Refinery, which has a debt of Tk 632 crore. Legendary International is also among the defaulters with a debt of about Tk 633 crore. Rangdhanu Builders Private Limited has an outstanding debt of Tk 587 crore, which is in the Bashundhara branch.
Meanwhile, the bank's liquidity crisis became dire when customers tried to withdraw money at the same time. A Bangladesh Bank spokesperson said, “The central bank has started working to save the bank. If necessary, it will be merged. No one will be exempted; strict action will be taken to recover the defaulters.”
Banking sector analysts say that behind this plight are long-standing political patronage, lack of accountability, and monopoly control. Loans have been made in the name of fake institutions to fill the pockets of their own people.
This bank, built with the money of ordinary customers, is now on the verge of collapse. Now many people have one question - will the money ever be recovered?