ICB Islamic Bank hit by fresh liquidity crisis

ICB Islamic Bank has looked for rebuilding of the reimbursement bundle for contributors of its antecedent Oriental Bank on grounds of a liquidity crunch, Bangladesh Bank authorities said. 

The bank still needs to return Tk 444.34 crore of now-outdated Oriental Bank's customers, which it should do by November 2021 - its fourth due date from the national bank - in stages. 

According to a BB direction in November 2016, ICB Islamic should discount all customers that had stores of up to Tk 20 lakh with the Oriental Bank inside the following three years. 

Once restoring those customers' assets, ICB Islamic would need to move to discounting the individuals who had stores of up to Tk 50 lakh. Their cases should be settled throughout the following one and a half years. 

Hitherto, ICB Islamic figured out how to pay back just a chosen few customers who had stores of up to Tk 20 lakh in May a year ago. 

The following installment second portion was expected a half year later in November however the bank neglected to keep its pledge, said a BB official. 

Therefore, a month ago, ICB Islamic proposed to the national bank to change over the sum, which has been solidified by the BB, into a Mudarabah store (term store) for the following three years; ICB Islamic will pay enthusiasm to the customers at regular intervals. 

Of the Tk 444.34 crore, Tk 51 crore must be discounted to singular contributors, Tk 5.53 crore to institutional investors, Tk 178.13 crore to government and semi-government organizations, Tk 190.34 crore to banks and non-bank budgetary foundations and Tk 19.34 crore to the BB. 

ICB Islamic, which came to fruition from the vestiges of Oriental Bank in 2008, has so far reimbursed Tk 1,521 crore of its ancestor's stores of Tk 1,946 crore. 

"The solidified sum will turn out to be more productive if the national bank acknowledges our request," said Muhammad Shafiq Bin Abdullah, overseeing chief of ICB Islamic Bank. 

Abdullah went ahead to accuse the stuff acquired from its forerunner for ICB Islamic's present monetary hardships. 

"In the event that we had no acquired solidified store, we would have been in the benefit zone," he said. 

On September 30 a year ago, ICB Islamic had a capital deficit of Tk 1,485 crore and non-performing advances adding up to Tk 709.25 crore. 

The bank's sources can be followed back to 1987, when it was working under the moniker Al-Baraka Bank. In 1994, it turned into a 'risky bank'. 

At that point in 2004, it began working as a planned business bank under another name, Oriental Bank. 

The BB in June 2006 broke up the top managerial staff of Oriental Bank subsequent to identifying enormous debasement. To protect the enthusiasm of contributors, the national bank assumed control over its full control and selected a BB official chief as the bank's overseer. 

In August 2007, the BB glided a delicate to offer most of the bank's offers. 

Two bidders took an interest in the delicate, with Swiss ICB Group leaving with the stake. The bank was renamed as ICB Islamic Bank in 2008.