Bank conceals Tk292cr loss to report Tk162cr profit, hides S Alam Group’s loan issues
October 27, 2025, 7:25am
Last updated: October 27, 2025, 7:39am
Highlights:
- Union Bank’s 2023 profit adjusted to a loss of Tk292 million.
- Same auditor uncovered discrepancies in profit reporting, leading to dividend cancellations.
- Previous management failed to disclose large debt defaults from S. Alam Group.
- Defaulted loans increased from Tk1 billion to nearly Tk25,000 billion.
- Bangladesh Bank mandates merger due to severe capital shortages.
- S. Alam Group represents 72% of Union Bank’s loan portfolio.
Union Bank, once under the influence of loan fraudster S. Alam Group, has reported a significant loss of Tk292 million for 2023 after revisiting its previously reported profit of Tk162 million. The revised financial documents were published on the Dhaka Stock Exchange (DSE) yesterday.
In light of these losses, the bank has also decided to cancel the 5% cash dividend it originally announced in 2023. The decision stemmed from severe losses, according to their statement.
Bangladesh Bank noted that Union Bank was responsible for 18% of the overall increase in defaulted loans within the sector, a trend that became evident after the government transition.
First, auditors MM Rahman & CO were enlisted to scrutinize the bank’s earlier financial statements that had previously shown profits. Unfortunately, these dividends were never realized because the annual general meeting could not take place due to political unrest in mid-August last year.
When inquired about the significant discrepancies revealed by the same audit firm, Union Bank’s Managing Director, Md Humayun Kabir, stated that the prior management lacked accurate documentation regarding the bank’s financial condition.
He further explained that audits are usually based on the information the bank provides. In this case, the auditor sought further investigation after corruption allegations surfaced in the media.
According to the revised financial report, the bank’s earnings per share for 2023 turned negative at Tk2.8, a notable decline compared to the originally reported positive Tk1.58. Currently, the bank’s stock price on the DSE stands at Tk1.70, against a face value of Tk10, having hit its lowest point at Tk1.50 recently.
Bangladesh Bank has included Union Bank in a merger plan with other financial entities as the financial crisis escalated. Defaulted loans have skyrocketed from Tk1 billion in June 2024 to nearly Tk25,000 billion by December 2024—a staggering increase, really—while the default loan rate shot up from 3.82% to an alarming 87%, crippling banks’ abilities to repay clients.
Union Bank has been linked to the S Alam Group since its chartering in 2013, artificially inflating its financial position over the years by hiding detrimental loans and maintaining misleadingly low default rates. As the government changed following Sheikh Hasina’s fall on August 5, 2024, these hidden truths began to emerge.
An investigation revealed that the S Alam Group family exercised control over Union Bank, owning approximately 26.18% of its shares. Reports indicated that S. Alam’s loans amounted to Tk20,634 million by the end of September 2024, representing 72% of the bank’s total loans.
This controversial conglomerate accessed funds through a complex web of 24 companies directly, and 259 more indirectly, yet repayment on these loans has been minimal.
A similar audit into the Global Islamic Bank—also linked to the S Alam Group—revealed a falsely reported 2023 profit of Tk128 million when the actual loss stood at Tk2,259 million. Consequently, planned dividends were rescinded following these findings.
