Islami Bank Reports Tk 32.86 Billion Nine-Month Loss as Quarterly Shortfalls Widen

Islami Bank Bangladesh reported a Tk 32.86 billion loss for the first nine months of the fiscal year, with the shortfall widening in each quarter, according to bdnews24.com. The bank disclosed the unaudited January to September results to the Dhaka Stock Exchange on November 1, 2026.

Islami Bank's Quarterly Losses Deepen

Earnings per share for the nine months stood at negative Tk 20.41, compared with a profit of Tk 0.62 per share and a net profit of Tk 998 million in the same period last year. The bank has 1,609,990,668 shares, and its per-share earnings put the total nine-month loss at Tk 32.86 billion.

The decline per share was Tk 1.79 in January-March, Tk 6.39 in April-June and Tk 12.24 in July-September. The latest quarter alone accounted for a loss of Tk 19.71 billion, against a profit of Tk 0.20 per share a year earlier.

Net asset value per share fell to Tk 23.64 at the end of September from Tk 44.52 in December. Net cash flow per share turned negative at Tk 36.12, compared with a positive Tk 12.44 in the same period last year.

Islami Bank attributed the result partly to a lack of returns from investments. It also cited high non-performing loans, large sums of investment funds allegedly siphoned off by parties associated with the bank, and a sharp decline in deposit inflows in the latest quarter. Rising interest expenses on deposits added to the losses and contributed to the negative cash flow, the bank said.

Islami Bank's Liquidity Support and Recoveries

Islami Bank Bangladesh is the country's first Shariah-based scheduled bank, founded in 1983 and headquartered in Dhaka, according to akta.pro company records. The same records show Bangladesh Bank dissolved the bank's board and assumed direct control under the Bank Company Act 1991 in June 2026, and provided Tk 13,000 crore in liquidity support while demanding Tk 10,000 crore in recoveries from S Alam Group.

The bank reported a consolidated net loss of Tk 2.88 billion, about $23.5 million, in the first quarter of 2026, a reversal from a Tk 297.71 million profit a year earlier. It recorded a post-IPO debt round of $242.2 million led by Bangladesh Bank in August 2026.

Leadership Vacancy and Loan Fraud Claims

Islami Bank has operated without a fully fledged board since June and without a managing director since April, leaving strategic decisions stalled, The Daily Star reported in September 2026.

In August 2026, the bank filed a complaint with the Anti-Corruption Commission against former president Mohammed Shahabuddin, S Alam and 36 others over the alleged embezzlement of around Tk 500 crore through loan fraud between 2017 and 2023, The Business Standard reported. The same month, official Yasin Ali was suspended for filing a complaint with the commission against S Alam and a former president over alleged loan fraud.

What Comes Next for Islami Bank

The bank signed agreements with Bangladesh Power Development Board in July 2026 and with Railway Co-operative Society in June 2026 for banking services, according to company records.