Jum-Bangla Desk: Social Islami Bank (SIBL) has gained momentum by getting liquidity support through Central Bank guarantee. This private sector bank is now able to pay the small amount demand immediately, even if it cannot pay the full amount to the customers. Since the end of Sheikh Hasina's dictatorship through the mass uprising of students, SIBL has collected Tk 794 crore in outstanding and defaulted loans. Full customer confidence is expected to return in the next 10 to 15 days.

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In a press conference held at the head office of Social Islami Bank on Monday, the managing director of the bank said this information. Forkanullah.

He said, 'We have come out of a disaster situation. It's like stumbling along the way. But we are fortunate that the board of the bank has been reconstituted. We also received liquidity support against central bank guarantees. It is also good to collect. After the mass uprising of the students, the bank's operations started on August 8. From then till September 30, recovery of outstanding and defaulted loans is promising.

The chairman of the bank is Professor Dr. Md. Sadiq Islam said, 'Social Islami Bank, which started its journey in 1995, has become the first bank of the country. But just as the bank was speeding towards the pinnacle of success, it fell prey to mismanagement and corruption. In 2017, S Alam Group forcibly took over the bank. The financial base of the bank was damaged by S Alam. In the last eight years, the strong financial base of the bank has been weakened, as well as the customers, officers and employees of the bank have been affected.

When the country was freed from dictatorial rule in the mass uprising of the students and got the taste of freedom again, then our beloved institution Social Islami Bank was freed from the black paws of miscreants. In the changed situation, the banking sector fell into a temporary crisis. Since Social Islami Bank, a direct ally of the fallen government, was taken over, this bank also suffered losses. Because of that, SIBL is currently going through a bit of a transitional period. Liquidity crisis is one of them.

The chairman said, '9 banks of Bangladesh are suffering from liquidity problems. Bangladesh Bank has solved the liquidity crisis in this case by guaranteeing in a different manner without printing any money, which undoubtedly deserves appreciation. In the meantime, we have received liquidity commitments of Tk 900 crore from four banks against Bangladesh Bank's guarantee and out of that Tk 450 crore have been received as liquidity-deposits. Apart from this, several other banks have already promised to provide us with liquidity-deposits. Social Islami Bank has adopted strategic plans to manage liquidity from various banks. Initially, various bill collection accounts which were temporarily suspended with 18 institutions such as DESCO, TITAS, Palli Vidyut, WASA, BTCL, BRTA, DPDC, Bakhrabad, Karnaphuli etc. have been opened.

The chairman also said, "We are honoring small amount of pay-orders and clearing cheques. I am offering over the counter cash withdrawal for a fixed amount for a few days. We believe that this will restore the confidence of the customers. Remittance customers are given top priority. We are contacting remittance customers who used to send their hard-earned money through us earlier, so that they continue to send remittances as before.

Seamless services will continue through 'BEFTN', 'RTGS', 'SIBL NOW' etc. This will restore the confidence of customers. We have made arrangements to start the ATM and NPSB services on priority so that the customers get uninterrupted again."

Sadiq Islam said, 'A good way to increase liquidity is recovery. And we have a big action plan for recovery. Meanwhile, from August 5 to September 30, we have recovered Rs 794 crore from overdue and classified investments. Even in these difficult times, our recovery rate is very promising. Apart from this, our plan is to strengthen the process of recovery of classified and forfeited investments, to speed up the ongoing cases, to revive the pending cases. Apart from this, identifying the willful defaulters and taking necessary steps and giving new cases in their name in each case.'

The chairman said, 'S Alam Group has taken the loan from SIBL in name and name, it is possible to recover the money from some of the ongoing projects and we are very diligent in recovering them. In the meantime, we have suspended the MTDR (Term Deposit) account of this group of about Tk 250 crore. Bangladesh Bank imposed certain restrictions on us in various banking activities including opening of LCs, which are being phased out. By this our banking activities are going to be normal. What is more promising is that we are in a slightly stronger position than other banks owned and operated by the S Alam Group.'

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To assure the customers, Sadiq Islam also said, 'Inshallah, the deposits of the customers will be fully protected in Social Islami Bank. Patience and love of customers will be rewarded by security of their deposits and best service. We hope to move towards a new bright future in new Bangladesh with our customers. Social Islami Bank will move forward on the path of excellence, and will achieve its own goals by playing a role in building a compassionate society.'