Islami Bank MD Resignation Approved

The Board of Directors of Islami Bank Bangladesh PLC convened a late-night meeting on Monday (1 June), formally accepting the resignation of its Managing Director amid escalating tensions surrounding recent leadership changes.

The meeting, held at approximately 10:30 pm, was chaired by the newly appointed Chairman Khurshid Alam. Due to the prevailing security concerns and ongoing protests outside the bank’s head office, the session was conducted virtually, with five board members participating online.

The resignation of Managing Director Omar Faruq Khan was accepted during the meeting. Until a permanent successor is appointed, the Board decided that Acting Managing Director Altaf Hossain will continue to oversee the bank’s operational activities.

The developments come at a time of heightened unrest outside the bank’s headquarters in Dhaka’s Dilkusha area, where customers staged demonstrations throughout the day demanding the withdrawal of the newly appointed chairman. Protesters alleged dissatisfaction with recent governance decisions and called for changes in leadership. Law enforcement agencies dispersed the crowd using sound grenades and water cannons after the situation escalated.

Below is a summary of the key decisions taken at the board meeting:

Officials from Bangladesh Bank later confirmed that the meeting was held with prior approval and not under any external coercion. A spokesperson clarified that the central bank did not exert pressure on the board to convene the session at night. According to the regulator, while in-person board meetings are typically expected to take place during banking hours, there is no procedural barrier to conducting virtual meetings outside standard office time, provided due authorisation is obtained.

The controversy follows a broader leadership transition within the bank. On 24 May, then Chairman Professor M Zubaidur Rahman resigned on the final working day before the Eid holidays. He had been serving as an independent director appointed by the central bank. On the same evening, Bangladesh Bank appointed Khurshid Alam, a former deputy governor, as the new chairman.

However, the appointment triggered opposition from a section of stakeholders who began campaigning against the decision under various platforms. Since the political changes in August 2024, the bank has witnessed repeated disputes over governance and leadership appointments, with some groups continuing to stage protests, including during holiday periods.

The latest board decision marks a significant step in stabilising the bank’s immediate management structure, though tensions surrounding its leadership and governance direction appear likely to continue in the near term.