Union Bank suffered Tk 26,000cr net loss in 2024 amid S. Alam Group scam

Union Bank PLC, a listed entity reportedly affected by financial irregularities linked to the S. Alam Group, recorded a staggering per-share loss of nearly Tk 249 in 2024. The summary of the bank's audited financial report for 2024 was published on Tuesday through the Dhaka Stock Exchange (DSE).

This massive loss translates to a net deficit of approximately Tk 26,000 crore, according to the audited financial statements.

The figure represents an 88-fold increase in the bank's net loss compared to the previous year, when it reported a net loss of over Tk 292 crore, reports UNB. A review of the published summary highlights the severity of the bank's financial condition.

In response to the crisis affecting Union Bank and four other distressed lenders, Bangladesh Bank (BB) has decided to merge five Islamic banks into a single entity, to be named the 'Combined Islamic Bank'.

The five banks involved in the merger are:  Union Bank, First Security Islami Bank, Social Islami Bank (SIBL), EXIM Bank and Global Islami Bank.
According to information from Bangladesh Bank, the 'Combined Islamic Bank' will have a total capital base of Tk 35,000 crore.

The government will provide Tk 20,000 crore of this capital, while the remaining Tk 15,000 crore will be raised by converting depositors' funds into shares of the new bank.

The central bank has appointed Nazma Mobarek, Secretary of the Financial Institutions Division, as chairperson of the newly-merged entity.