TDS Desk:

Bangladesh Bank has imposed lending limits on six banks owned by the controversial S Alam Group, requiring them to obtain central bank approval before granting any loan exceeding Tk5 crore.

Also, overdue loans or those exceeding the credit limit cannot be renewed without cash recovery, as outlined in a letter sent to these banks today (19 August).

The banks are Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank, according to Bangladesh Bank spokesperson Md Mejbahul Haque, who spoke to.

Previously, a similar restriction was placed on the National Bank, a private-sector institution.

The central bank’s decision comes at a time when Islami banks are grappling with a severe liquidity shortage, partly due to extensive borrowing by entities owned by the S Alam Group.