Union Bank’s revised financials have exposed the extent of accounting manipulation under the influence of S. Alam Group. What was earlier declared as a Tk 162 crore profit for 2023 has now turned into a Tk 292 crore loss, according to the bank’s updated audit published on the DSE website.

The same audit firm, M.M. Rahman & Co., responsible for the earlier report, re-audited the accounts and confirmed that key loan documents had been withheld by the bank’s former management.

Managing Director Humayun Kabir admitted that a significant portion of S. Alam’s loans was shown as regular despite being defaulted.

Bangladesh Bank’s investigation found that 72% of the bank’s loan exposure—about Tk 20,634 crore—was to companies directly or indirectly linked to S. Alam Group.

Union Bank’s classified loans ballooned from Tk 1,000 crore in June to Tk 25,000 crore by December 2024, pushing its default rate to an astonishing 87%.

The central bank report shows that following the regime change in August 2024, Union Bank accounted for 18% of the Tk 1.35 trillion in newly uncovered non-performing loans across the financial system.

The capital erosion has deepened to Tk 14,000 crore, leaving the bank dependent on central bank assistance.

The same pattern of manipulation was uncovered at Global Islami Bank, also once controlled by S. Alam Group, which masked a Tk 2,259 crore loss with a fake Tk 128 crore profit declaration.

Economists say these exposures underline the deep-rooted governance crisis in Bangladesh’s private banking system and may require comprehensive restructuring to restore public trust.