Regulator Alters Islami Bank Board Again

In a further step to reinforce governance in the banking sector, Bangladesh Bank has removed Md Abdul Jalil from the board of Islami Bank Bangladesh and appointed SM Abdul Hamid as a new director. The decision took effect on 16 March and reflects the regulator’s ongoing supervisory engagement with one of the country’s largest private banks.

Md Abdul Jalil had been serving as an independent director and was also part of the bank’s executive committee. He joined the board on 22 August 2024, when the central bank dissolved the previous governing body and formed a new board composed of five independent directors. That intervention was widely viewed as a decisive move to improve corporate governance, strengthen oversight, and restore stakeholder confidence.

While no official explanation has been issued regarding Jalil’s removal, sector insiders suggest that periodic board adjustments are not uncommon in cases where regulators seek to optimise expertise, ensure compliance, and address emerging operational or strategic priorities. The latest change signals that regulatory scrutiny over the bank remains active and evolving.

The newly appointed director, SM Abdul Hamid, brings a wealth of professional experience spanning several decades in banking and financial management. He is a Fellow Chartered Accountant of the Institute of Chartered Accountants of Bangladesh and holds a Master of Business Administration in Finance and Banking. His professional credentials were recognised in 2012 when he received an Excellence Award in the finance and banking sector.

Hamid’s career includes senior leadership roles at multiple financial institutions. At IFIC Bank, he served as Deputy Managing Director and Chief Financial Officer, overseeing critical areas such as financial operations, internal controls, regulatory compliance, and anti-money laundering frameworks. He subsequently held the position of Deputy Managing Director at both Premier Bank and Citizens Bank, where he contributed to strengthening governance systems and operational efficiency.

At present, Hamid is a partner at Islam Jahid & Co Chartered Accountants, where he is engaged in advisory work related to auditing, financial reporting, and corporate governance. His appointment is expected to enhance the technical depth and regulatory alignment of the bank’s board.

Key Information at a Glance

The latest reshuffle underscores the central bank’s proactive stance in maintaining sound governance practices within key financial institutions. Analysts note that such measures are essential to ensuring transparency, mitigating risk, and safeguarding the long-term stability of the banking system.