Dhaka, April 28 -- Al Arafah Islami Bank Ltd reportedly disbursed over Tk 1,200 crore in loans amidst significant irregularities.

According to Bangladesh Bank data, three branches of the bank in different districts issued loans totaling Tk 1,216.94 crore against inadequate collateral and falsified documents, complicating recovery efforts as influential borrowers show reluctance to repay.

One notable instance involves the AIBL Agrabad, Chattogram branch, which in November 2008, facilitated a Tk 135.53 crore loan for Messrs. Chittagong Ispat to import a ship from Singapore-based M/s Aerial Maritime Private Limited.

Chittagong Ispat, with collateral valued only at Tk 16.8 crore, is accused of misappropriating the funds.

However, M/s Aeri...