Islami Bank holds virtual board meeting at night amid protests; MD's resignation accepted

Islami Bank Bangladesh PLC held a virtual board
meeting on Monday night (1 June), chaired by its newly appointed Chairman
Khurshid Alam, whose resignation was demanded by protesting customers
throughout the day.
Confirming the development, Bangladesh Bank
Executive Director and spokesperson Arief Hossain Khan said five board members
participated in the meeting virtually.
He said the board accepted the resignation
letter recently submitted by Managing Director Omar Faruk Khan and decided to
continue the bank's operations under acting MD Md Altaf Hossain until a
permanent appointment is made.
Asked whether the online meeting had been
arranged under pressure from Bangladesh Bank, Arief denied the allegation,
saying no such pressure had been exerted by the central bank. He added that the
meeting was organised with Bangladesh Bank's approval.
Responding to a question about holding a board
meeting outside banking hours, he said an in-person meeting would have had to
take place during official banking hours, but there were no restrictions on
conducting an online meeting at night.
Chairman Khurshid Alam and Independent Director
Khurshid Wahab could not be reached for comments.
The board meeting had originally been called to
facilitate the new chairman's formal assumption of duties. However, the planned
in-person session could not take place due to customer protests.
Customers of the bank staged demonstrations in
front of its head office in Dhaka's Dilkusha area from Monday morning,
demanding the cancellation of the new chairman's appointment. Police dispersed
a human chain programme using sound grenades and water cannons earlier in the
day.
The board meeting had initially been scheduled
to take place under the leadership of the new chairman.
Former chairman Professor M Zubaidur Rahman, an
independent director appointed by Bangladesh Bank, resigned on 24 May, the last
working day before Eid. On the same night, Bangladesh Bank appointed former
deputy governor Md Khurshid Alam as the new chairman.
Following political changes in August 2024,
Khurshid Alam had been forced to resign from a previous position. Since his
latest appointment, a political group associated with the bank has opposed the
decision through various platforms.
Programmes were reportedly held across the
country during the Eid holidays under the banner of a customer forum,
culminating in Monday's demonstration outside the bank's headquarters in Dhaka.
















