Islami Bank Board Meeting Halted Amid Protests Over New Chairman
The first working day after the extended Eid holidays witnessed dramatic scenes in Dhaka’s Motijheel financial district, as intense protests by customers and shareholders forced Islami Bank authorities to suspend a scheduled board meeting on Monday, June 1.
Hundreds of demonstrators gathered under the banners of the “Conscious Customers Forum” and the “Victimized Customers Coordination Council,” demanding the resignation of newly appointed Chairman Khurshid Alam, whose appointment has sparked widespread controversy.
According to sources, tensions escalated around 4:00 pm when attempts were allegedly made to convene the board meeting virtually through Acting Managing Director (MD) Altaf Hossain in the presence of law enforcement personnel. Protesters compared the situation to the controversial events of 2017, when control of the bank reportedly changed hands during a board meeting held at a hotel in Gulshan.
Facing sustained demonstrations, the bank ultimately informed Bangladesh Bank that the online board meeting had been officially postponed.
Virtual Meeting Efforts Fail Amid Public Opposition
Acting MD Altaf Hossain acknowledged that despite the availability of modern virtual communication technologies, the board meeting could not be held either physically or online due to the ongoing protests.
Several senior bank officials alleged that considerable administrative pressure had been exerted to ensure the meeting took place. According to them, a specialized IT team was even dispatched to the residence of the newly appointed chairman to facilitate the virtual session.
Controversial Leadership Changes
The latest developments follow a series of leadership changes at the bank. On May 24, former Chairman Professor Dr. M. Zubaidur Rahman resigned following government intervention, while Managing Director Omar Faruk Khan was sent on leave.
On the same day, Bangladesh Bank appointed former Deputy Governor Khurshid Alam as the new chairman. Protesters claim that Alam is closely associated with the controversial S. Alam business group.
Demonstrators argue that appointing a figure who was previously compelled to resign amid protests by central bank employees following the political changes of August 5, 2024, could further deepen the bank’s credibility crisis and erode depositor confidence.
Demonstrators Demand Reforms
Although the new chairman was expected to assume office officially on Monday, protesters began gathering in front of Islami Bank Tower in Motijheel from the morning hours.
In addition to demanding the chairman’s resignation, demonstrators called for the resignation of the current central bank governor and demanded the confiscation of assets allegedly linked to the S. Alam Group, with the recovered funds returned to the bank.
Sources claim that clashes occurred during the demonstrations, with police reportedly using batons, tear gas, water cannons, and sound grenades to disperse protesters. Organizers alleged that more than one hundred people were injured and are currently receiving treatment at local hospitals.
Concerns Over Liquidity and Customer Confidence
Professor Nur Nabi Manik, President of the Victimized Customers Coordination Council, alleged that the appointment process violated established regulations and called for the formation of a new board representing the institution’s genuine stakeholders.
He further claimed that severe liquidity constraints have left many customers unable to withdraw funds through cheques, while numerous ATM booths reportedly remain short of cash. According to him, the situation poses significant risks not only to ordinary depositors but also to entrepreneurs and the broader banking sector.
The unfolding crisis highlights growing concerns over governance, customer confidence, and financial stability at one of Bangladesh’s largest Islamic financial institutions, with stakeholders now closely watching the next steps of both the bank’s management and the country’s financial regulators.
DBTech/MI/EK/OR
