SM Abdul Hamid Appointed Independent Director

S.M. Abdul Hamid, a seasoned banker and professional chartered accountant, has been appointed as an independent director of Islami Bank Bangladesh. The decision was taken by Bangladesh Bank, the country’s central bank, following the removal of the previous independent director, Abdul Jalil, amid controversy over non-performing loans.

Focus on Financial Strengthening

Upon assuming his new role, Abdul Hamid stated, “My priority will be to strengthen the bank’s financial health. Bangladesh Bank has highlighted certain key priorities, which I will determine after reviewing the current situation of the bank. I will strive to place the bank in a strong position.”

Bangladesh Bank’s spokesperson and Executive Director, Arifur Rahman Khan, confirmed the appointment, adding, “The central bank deemed it necessary to nominate a new independent director, and this is part of routine regulatory procedures.”

The regulator has already sent a formal communication to Islami Bank regarding the appointment. Abdul Hamid, however, noted that although the official letter is yet to be received, the bank has been formally informed of the decision. He is expected to attend his first board meeting following the Eid holidays.

Extensive Banking Experience

Abdul Hamid brings decades of experience in banking and finance. He previously served as Deputy Managing Director and Chief Financial Officer of IFIC Bank, and has held positions at Premier Bank. Currently, he is a partner at the auditing firm Islam Zahid & Company, further demonstrating his expertise in financial management and corporate governance.

The previous independent director, Abdul Jalil, was removed after allegations emerged regarding attempts to influence loan-related decisions within the bank. While the investigation led to his removal, his name has reportedly not yet been removed from the bank’s website.

Board Composition

Currently, Islami Bank Bangladesh has five directors, all appointed as independent directors by Bangladesh Bank. Following the divestment of S. Alam Group, there are no shareholder directors remaining on the board, marking a shift towards fully independent governance.

This composition ensures regulatory oversight and independence from former controlling shareholders, aiming to strengthen the governance framework and accountability of the bank.

Outlook and Priorities

Abdul Hamid’s appointment comes at a critical juncture for Islami Bank, which has faced scrutiny over non-performing loans and governance challenges. His immediate focus will include reviewing the bank’s financial health, assessing compliance with regulatory requirements, and advising on strategic initiatives to restore stakeholder confidence.

By bringing in a professional with substantial banking and auditing experience, Bangladesh Bank intends to enhance transparency, safeguard depositor interests, and reinforce sound corporate governance within the institution. The central bank’s proactive role in appointing independent directors highlights its commitment to strengthening the Shariah-compliant banking sector while mitigating financial and operational risks.