Al-Arafah Islami Bank MD removed over irregularities

Farman R Chowdhury, managing director of Al-Arafah Islami Bank PLC, has been removed from his post over irregularities and lapses in governance and oversight.

Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan confirmed the development.

Khan told The Daily Star that the bank's board had recommended Chowdhury's removal, which the central bank later approved.

In April this year, Chowdhury, along with three other officials, was sent on forced leave for three months.

Seeking anonymity, Al-Arafah Islami Bank officials said the board of directors had reviewed a special inspection report issued by the Bangladesh Bank concerning various issues and operations of the commercial lender, with particular focus on its agent banking division.

The inspection report held the managing director and several officials accountable for irregularities and lapses in governance and oversight, they added.

Since April, Mohd. Rafat Ullah Khan, additional managing director of the bank, has been carrying out the responsibilities of the managing director.

Following the political changeover in August last year, the Bangladesh Bank dissolved the bank's board led by Abdus Samad Labu and appointed a five-member interim board.

Labu is the vice-chairman of the controversial conglomerate S Alam Group and the brother of its Chairman Mohammed Saiful Alam.