TDS Desk:

The Bangladesh Bank on Monday instructed six banks owned by the S Alam Group to halt any fund transfers, cash withdrawals and the opening of letters of credit (LCs) associated with the Chattogram-based business conglomerate, its subsidiary companies and related individuals.

However, deposits can still be accepted in their accounts, according to a letter from the central bank’s Banking Inspection Department-7.

The directive was issued to Islami Bank, First Security Islami Bank (FSIBL), Social Islami Bank (SIBL), Union Bank, Global Islami Bank (GIB), and Bangladesh Commerce Bank (BCB). These banks have already communicated the Bangladesh Bank’s instructions to their branches and sub-branches.

The move comes as the central bank initiates a restructuring of the boards of directors of the banks linked to the S Alam Group, said BB spokesperson Md Mezbaul Haque.

The restrictions on withdrawals will be eased once the reconstitution of the banks’ boards is completed, said.