Islami Bank customers welcome board dissolution, seek non-political new panel

A group of Islami Bank customers has welcomed Bangladesh Bank's decision to dissolve the bank's board of directors and urged the central bank to immediately appoint a new panel comprising competent and acceptable individuals with no political affiliation.

Under the banner of the Islami Bank Sachetan Grahok Forum, the customers today (15 June) congratulated Bangladesh Bank for dissolving the board, including its chairman, and called for the bank's governance structure to be restored.

They also urged the central bank to reconstitute the board with individuals who were involved in managing the bank before its takeover by the S Alam Group.

The customers also announced that they will submit a seven-point memorandum to the Bangladesh Bank governor tomorrow (16 June) at 11:30am.

Nurunnabi Chowdhury Manik, president of the customer forum, called for the immediate formation of a new board consisting of honest, skilled and widely acceptable individuals.

The forum also demanded that no political figure be included on the new board.

Bangladesh Bank yesterday (14 June) removed Islami Bank's entire board of directors, including the chairman, under the Bank Company Act, 1991.

In a statement, the central bank said the board had been dissolved in the interest of depositors and the public.

It also said that, under Section 47(3) of the Bank Company Act, 1991, Bangladesh Bank Executive Director Mohammad Zahir Hussain had been assigned to exercise all powers and perform the responsibilities of the board.

On the same day, Bangladesh Bank extended a special loan of Tk2,500 crore to Islami Bank Bangladesh to help the Shariah-based lender address a worsening liquidity crisis.

The bank had been facing severe liquidity pressure following unrest that erupted after the Eid-ul-Adha holidays over the appointment of its now removed chairman, Md Khurshid Alam.

Islami Bank Sachetan Grahok Forum had been staging demonstrations in protest against the appointment.