Dhaka: Finance Adviser Dr Salehuddin Ahmed announced that auditors of five banks whose shares have been reduced to zero will face action, as the government investigates the circumstances under which shareholders purchased these shares. The banks involved are First Security Islami Bank, Social Islami Bank Limited (SIBL), EXIM Bank, Global Islami Bank, and Union Bank.

According to United News of Bangladesh, Dr Salehuddin addressed reporters following a meeting of the Advisory Committee on Government Purchase and Economic Affairs, stating that authorities are scrutinizing the conditions in which investments were made in these banks. Dr Salehuddin assured that action against the auditors is under review.

In response to questions about compensation for general shareholders, Dr Salehuddin acknowledged the complexity of the issue. He noted that the government’s primary focus is on protecting depositors and ensuring that their funds are returned in full. He clarified the distinction between depositors and shareholders, emphasizing that shareholders invest voluntarily, aware of market risks, and seeking ownership.

Journalists highlighted that some shareholders claim to have purchased shares based on audited financial statements showing profits before August 5, 2024. Dr Salehuddin confirmed that this is part of the ongoing investigation into the context of share purchases and affirmed that action against the auditors who approved those financial statements is being considered, although specific details were not disclosed.

The government has initiated significant restructuring efforts in the banking sector, including the merger of several weak banks, aiming to restore stability, enhance governance, and safeguard depositors’ interests.