Former BB deputy governor forced out after uprising made Islami Bank chairman

Bangladesh Bank (BB) has appointed Md Khurshid Alam, a former deputy governor, as chairman of Islami Bank PLC, hours after the previous chairman resigned.

Alam was one of the top BB officials who was forced to leave the central bank by over a hundred protesting officials of BB on August 6, a day after the fall of the previous Sheikh Hasina government following a popular uprising in July 2024.

Late on Sunday evening, the day before the country entered a nearly week-long Eid holiday, the BB issued a letter to the managing director of Islami Bank appointing Alam as an independent director and chairman of the largest Shariah-based bank.

The appointment of Alam has sparked widespread discussion in the banking sector.

Before the appointment, M Zubaidur Rahman, independent director and chairman of Islami Bank, resigned, citing personal reasons.

He submitted his resignation letter to the BB governor, according to Arief Hossain Khan, executive director and spokesperson for the central bank.

However, several officials of both BB and Islami Bank, speaking on condition of anonymity, said that he was forced to resign.

Officials said the board of Islami Bank was scheduled to hold a meeting on Sunday. Rahman was supposed to attend the meeting.

However, at around 4 pm, he met the BB governor and resigned, they added.

Insiders said that after the BNP-led government assumed power, differences emerged between top officials of BB and senior executives of Islami Bank over various decisions concerning the bank.

A few days ago, a group of people staged a demonstration demanding the resignation of Rahman.
Earlier last month, Islami Bank sent its managing director, Md Omar Faruk Khan, on leave for more than one and a half months.

Md Altaf Hossain, an additional managing director, was made acting managing director during Khan’s absence.

Khan came to the bank on Sunday, but an organisation with the banner ‘Conscious Consumers Forum’ did not allow him to enter. They said that if he joined the board meeting, he would be forced to resign.

The Daily Star tried to reach Khan and Rahman over the phone, but they did not respond.