A major statistical discrepancy has sparked debate within Bangladesh’s financial sector over the exact asset size and transaction volumes of Islami Bank Bangladesh PLC’s flagship microfinance wing, the Rural Development Scheme (RDS).
The controversy began following statements made by Home Minister Salahuddin Ahmed in the National Parliament, under Rule 68 of the Rules of Procedure.
The minister claimed that a total of Tk22,000 crore had been distributed through the RDS network, alleging that Tk11,000 crore was disbursed prior to the national elections, and an additional Tk11,000 crore was cleared after August 5, 2024.
However, formal statistical disclosures released by Islami Bank present a different picture, indicating that the scheme's current active loan portfolio or investment balance stands at Tk6,880 crore.
This substantial difference between the Home Minister's statement and the bank's records has led financial analysts to question whether the issue stems from a confusion between cumulative transaction flows and actual outstanding balances.
Banking sector experts point out that the difference between the two numbers is tied to standard accounting definitions used in the microfinance industry, where cumulative disbursement figures are structurally distinct from an outstanding net loan balance.
In microfinance models like the RDS, capital is continuously recycled. Borrowers receive small-scale loans and repay them in weekly or monthly installments.
As this cash flows back into the bank, it is immediately re-disbursed to new or existing borrowers.
Consequently, tracking the cumulative amount of money distributed over several fiscal quarters will always yield a much larger figure than the actual net outstanding loan portfolio recorded at any single point in time.
Data released by Islami Bank's rural operations division confirms that the ongoing net loan balance has remained stable, even as gross transaction volumes continue to grow.
As of May 2026, the RDS program serves 853,592 active borrowers—primarily low-income women in rural districts—with a total outstanding loan portfolio of Tk6,880 crore.
The project maintains a customer savings pool of Tk2,269 crore and reports a high recovery rate of 96.48%.
An analysis of the data shows that the vast majority of loans are recovered within the same fiscal year they are issued.
For example, over the 36-month period spanning 2023, 2024, and 2025, the RDS program oversaw total gross disbursements of Tk21,208 crore, while recovering Tk20,107 crore during that same timeframe.
When adding the Tk2,743 crore disbursed during the first five months of 2026, the total gross amount distributed over this multi-year period reaches Tk23,951 crore, balanced by Tk22,659 crore in total recoveries.
Analysts note that if the Home Minister’s speech was referencing these cumulative, multi-year transaction flows, the Tk22,000 crore figure aligns with historical data; however, it does not represent the actual current size of the outstanding loan portfolio.
Pre- and post-election trends
The Home Minister’s parliamentary address raised concerns regarding unusual capital flight, alleging that large sums were distributed to influence political outcomes during key election windows.
To verify these claims, financial analysts reviewed the bank's operational logs from the four-month window spanning November 2025 through February 2026, which covered the critical pre- and post-election periods.
The data indicates that the bank disbursed a total of Tk2,362 crore during this timeframe, with monthly totals breaking down to Tk654 crore in November, Tk670 crore in December, Tk530 crore in January, and Tk508 crore in February. During the same four months, the bank recovered Tk2,211 crore from its borrowers.
The official records show that lending patterns followed typical seasonal trends, with no statistical evidence of an irregular Tk11,000 crore or Tk22,000 crore surge during the election cycle.
