First Security Islami Bank Limited

First Security Islami Bank Limited, now styled First Security Islami Bank PLC, is a Bangladeshi commercial bank focused on Sharia-compliant banking. The institution was incorporated on 29 August 1999 and began operations on 25 October of that year with authorized capital of 1 billion taka. It initially operated as a conventional commercial bank, but from 2009 it developed its business around Islamic banking principles. The bank serves customers in Bangladesh through retail, corporate, SME and other banking activities. Its typical services include deposit accounts, investment and financing facilities structured in accordance with Islamic finance principles, remittance-related services, trade finance, cards, electronic banking and other commercial-bank products. The bank also operates through an investment subsidiary, First Security Islami Capital and Investment Limited. Its public-facing identity combines the First Security name with an Islamic-banking proposition, positioning it among Bangladesh's Sharia-compliant financial institutions rather than as a conventional international banking group. First Security Islami Bank has participated in community and sports-related activities. Its corporate social responsibility work has included scholarships for meritorious students, as well as the establishment of a charity hospital and a school. In 2014, the Bangladesh Sports Press Association recognized the bank as its best sponsor; the bank also sponsored the National School Hockey Tournament. The bank's financial and governance profile became a major public issue in the early 2020s. Like other listed Bangladeshi banks, it experienced declining profits in 2018. In September 2021 it issued shares to increase paid-up capital and declared a 10 percent dividend for that year. In 2022, reports described a cash shortage after the approval of large unsecured loans. During December 2022, the Bangladesh High Court ordered an investigation into First Security Islami Bank and two other banks associated with S. Alam Group. The investigation order involved the Criminal Investigation Department, Bangladesh Financial Intelligence Unit, Bangladesh Bank and the Anti-Corruption Commission. Bangladesh Bank appointed observers to First Security Islami Bank in December 2022 and later imposed restrictions affecting several banks that had provided major loans. On 29 December 2022, First Security Islami Bank and several other banks received emergency liquidity support from Bangladesh Bank. These events placed the bank's lending practices, liquidity position, related-party exposure and governance under heightened regulatory scrutiny. On 1 September 2024, Bangladesh Bank dissolved the bank's board, which had been associated with the S. Alam Group, and appointed independent directors. This represented a significant governance change and a move toward regulatory intervention. The bank remains an active Bangladeshi banking institution, but its current ownership structure, executive leadership and long-term restructuring position should be verified against the latest official filings.

First Security Islami Bank was incorporated in Bangladesh on 29 August 1999 and commenced banking operations on 25 October 1999. It entered the market as a commercial bank with authorized capital of 1 billion taka. The institution later shifted its strategic identity toward Islamic banking; from 2009, it began operating as a Sharia-compliant bank. The bank's business developed around the needs of Bangladeshi retail customers, companies and small and medium-sized enterprises. Its activities include deposit-taking, Islamic investment and financing, trade finance, remittances, electronic banking and capital-market-related services. First Security Islami Capital and Investment Limited is identified as a subsidiary. The bank has also used corporate social responsibility programs to support education and social welfare, including scholarships, a charity hospital and a school. During the 2010s, the bank remained part of Bangladesh's listed banking sector. It reported weaker profitability in 2018, a period in which several listed Bangladeshi banks also experienced declining profits. In 2014, its sports sponsorship activities received recognition from the Bangladesh Sports Press Association, and it sponsored the National School Hockey Tournament. In September 2021, the bank issued shares to increase paid-up capital and declared a 10 percent dividend for the year. The bank's public profile changed substantially in 2022. Reports described a cash shortage after the approval of substantial unsecured loans. On 4 December 2022, the Bangladesh High Court ordered the Criminal Investigation Department, Bangladesh Financial Intelligence Unit, Bangladesh Bank and Anti-Corruption Commission to investigate First Security Islami Bank together with Social Islami Bank and Islami Bank Bangladesh. The proceedings were connected to the reported influence of S. Alam Group, whose chairman Mohammed Saiful Alam had served as First Security Islami Bank's chairman. Bangladesh Bank appointed observers to First Security Islami Bank in December 2022. Later that month, the bank was among several institutions receiving emergency liquidity support from Bangladesh Bank. Regulatory restrictions were also reported for banks that had extended major loans. These developments raised concerns about liquidity, unsecured lending, related-party exposure and governance in Bangladesh's Islamic-banking sector. On 1 September 2024, Bangladesh Bank dissolved the First Security Islami Bank board and appointed independent directors. The action removed the previous board structure associated with S. Alam Group and marked a major regulatory and governance intervention. The bank continues to operate under the First Security Islami Bank name, while its post-2024 ownership, leadership, financial condition and restructuring arrangements require confirmation from current official disclosures.

• 2024

  Board dissolved by Bangladesh Bank

  [1]First Security Islami Bank PLCen.wikipedia.org

  Bangladesh Bank dissolved the existing board and appointed independent directors.

• 2022

  Regulatory scrutiny and liquidity support

  [1]First Security Islami Bank PLCen.wikipedia.org

  The bank faced reported liquidity pressure, received regulatory attention and was included in emergency liquidity support from Bangladesh Bank.

• 2021

  Share issuance and dividend

  [1]First Security Islami Bank PLCen.wikipedia.org

  The bank issued shares to increase paid-up capital and declared a 10 percent dividend for the year.

• 2018

  Profit decline

  [1]First Security Islami Bank PLCen.wikipedia.org

  The bank experienced declining profits during a broader period of weakness among listed Bangladeshi banks.

• 2014

  Sports sponsorship recognition

  [1]First Security Islami Bank PLCen.wikipedia.org

  The Bangladesh Sports Press Association recognized the bank as its best sponsor, following activities including sponsorship of the National School Hockey Tournament.

• 2009

  Transition to Islamic banking

  [1]First Security Islami Bank PLCen.wikipedia.org

  The bank began operating its banking business according to Sharia-compliant principles.

• 1999

  Incorporation and launch

  [1]First Security Islami Bank PLCen.wikipedia.org

  The bank was incorporated on 29 August and began operations on 25 October with authorized capital of 1 billion taka.

A Bangladesh-focused commercial bank positioned around Sharia-compliant banking, with services spanning retail, corporate, SME and investment activities.

• Deposits · 2009

  Islamic deposit services

  Deposit products designed for customers seeking Sharia-compliant banking arrangements. The bank's Islamic-banking model distinguishes these accounts from conventional interest-bearing products through structures based on Islamic finance principles.

• Financing · 2009

  Islamic investment and financing

  Sharia-compliant financing and investment facilities for individuals, businesses and institutions. These activities form the core of the bank's commercial proposition and support working capital, trade, asset acquisition and other customer needs.

• Banking services

  Retail, corporate and SME banking

  A broad banking portfolio serving households, corporations and small and medium-sized enterprises. Services include accounts, financing, payments, trade-related support, remittances and digital or electronic banking access.

• Investment services

  Capital-market and investment services

  Investment-related activities are also conducted through First Security Islami Capital and Investment Limited, the subsidiary identified in public descriptions of the bank.

• 2024

  Board dissolution and regulatory takeover of governance

  Bangladesh Bank dissolved the board associated with S. Alam Group and installed independent directors, following earlier scrutiny of the bank's governance and financial position.

  Source

• 2022

  Investigation into lending and bank control

  The Bangladesh High Court ordered multiple investigative and regulatory agencies to investigate First Security Islami Bank and two other banks associated in reports with S. Alam Group. The matter concerned allegations involving lending, control and possible misuse of bank resources.

  Source

• 2022

  Cash shortage and unsecured-loan concerns

  The bank was reported to have experienced a cash crunch after approving large unsecured loans, leading to heightened concern about its liquidity and credit-risk management.

  Source

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• 2014National School Hockey Tournament sponsorship

  Bangladesh

  The bank sponsored the National School Hockey Tournament as part of its sports-related public engagement.

  Outcome. The Bangladesh Sports Press Association recognized the bank as its best sponsor in 2014.

  Source
• Education and social welfare programs

  Bangladesh

  The bank's corporate social responsibility activities include scholarships for high-performing students and support for a charity hospital and school.

  Source

• 2024

  Regulatory replacement of the boardStrategy

  Background

  The bank faced continuing governance and financial scrutiny following reported liquidity problems and investigations into banks associated with S. Alam Group.

  Action taken

  Bangladesh Bank dissolved the existing board and appointed independent directors on 1 September 2024.

  Aftermath

  The bank entered a new regulatory-governance phase; its post-intervention ownership and restructuring position require confirmation from current filings.

  Source

• 2021

  Issued shares to raise paid-up capitalOther

  Background

  The bank sought to increase its paid-up capital while remaining a listed Bangladeshi bank.

  Action taken

  It issued shares in September 2021 and declared a 10 percent dividend for the year.

  Source

• 2009

  Adopted Islamic-banking operationsStrategy

  Background

  The bank had been incorporated as a commercial bank but subsequently shifted its operating model toward Sharia-compliant banking.

  Action taken

  From 2009, it began conducting banking activities under Islamic finance principles.

  Aftermath

  The Islamic-banking identity became central to the bank's market positioning.

  Source

1. 1First Security Islami Bank PLCen.wikipedia.org
2. 2First Security Islami Bank official websitefsiblbd.com