United News of Bangladesh

The Islami Bank Sachetan Grahak Forum on Sunday staged a sit-in in front of the head office of Islami Bank Bangladesh PLC to press for its seven-point demand aimed at stabilising the bank and restoring corporate governance. The bank’s shareholders and customers joined the demonstration to voice concerns over the institution’s current operational direction, according to a press release. The key demands placed by the forum include the immediate formation of a fully independent and professional board of directors comprising honest, capable, and experienced individuals through discussions with stakeholders. The demonstrators also demanded the restoration of valid ownership to original shareholders who were allegedly forced out in 2017 through state coercion. Furthermore, they urged the government to set up a special tribunal to try financial sector looters, confiscate assets belonging to S Alam Group and recover thousands of crores of embezzled funds. The forum called upon the government and Bangladesh Bank to refrain from making controversial regulatory decisions that could fuel panic among depositors. It also demanded the immediate repeal of Section 18(A) of the Bank Company Act, claiming it contains masked provisions that allow financial offenders to be rehabilitated back into the banking sector. Additionally, the protesters called for the immediate withdrawal of recent parliamentary statements regarding Islami Bank made by the Home Minister, which they claimed provided a covert indication of handing control back to S Alam Group. Addressing the gathering, Prof Nur Nabi Manik, convener of platform, announced that their movement will continue until all seven demands are fully realised. He expressed frustration over regulatory inaction, noting that while the central bank governor initially showed a positive inclination after receiving their memorandum, no effective or visible measures have since been implemented by Bangladesh Bank. This, he said, has triggered fresh anxieties among depositors and shareholders. The forum chief added that comprehensive implementation of the seven-point demand is essential to re-establishing discipline within Islami Bank and overcoming the ongoing confidence crisis among the bank's extensive customer base.

Country’s leading Shariah-based financial institution, Islami Bank Bangladesh PLC, on Saturday issued a cautionary notice warning of legal action against any attempts to disrupt its operations or create instability. In the notice, the bank authority stated that any attempts to create chaos, blockages, or an unstable environment surrounding the bank's day-to-day operations will be treated as a punishable offense under the law, and necessary steps will be taken in accordance with the Bank Company Act. The regulatory warning comes as the bank actively works to fully restore customer confidence and stabilize operations following liquidity pressures and widespread market rumors that had triggered high deposit withdrawal demands in recent months. According to the bank administration, the financial situation is now steadily returning to normal, and customer transactions are being processed smoothly following timely liquidity assistance provided by the central bank, Bangladesh Bank. Speaking to reporters, Islami Bank’s Acting Managing Director Altaf Husain confirmed that the institution is progressively overcoming its temporary challenges as public trust begins to rebound. "Islami Bank is steadily returning to normalcy. Confidence is returning among our depositors, new deposits are growing, and the pressure of sudden withdrawals has significantly decreased compared to previous months," Husain said. Explaining the rationale behind the sudden cautionary announcement, the Acting Managing Director added that the notice was primarily issued to safeguard the core interests of its clients and ensure uninterrupted banking facilities. He emphasized that the measure aims to prevent vested quarters from spreading misinformation or staging artificial disruptions. Banking sector experts noted that maintaining the stability of Islami Bank is critical for the overall health of the country's financial system due to its vast client base, extensive branch network, and substantial share in national deposits. Financial analysts added that continuous regulatory oversight from Bangladesh Bank, combined with sustained liquidity support and proactive management policies, will enable the country's largest Islamic lender to fully stabilize its operations shortly. They also advised depositors to rely strictly on official corporate announcements rather than unverified rumors.

Islami Bank Conscious Depositors’ Forum on Tuesday submitted a memorandum to the Bangladesh Bank Governor demanding a transparent, professional management structure to safeguard public money. The platform warned of launching a rigorous countrywide agitation if the central bank fails to immediately form an acceptable and professional board of directors, and hand the bank's ownership back to its genuine shareholders. The forum strongly criticided the centralidation of all administrative powers under a single central bank administrator, stating that running a massive financial institution without a fully functioning board is detrimental to corporate governance. They expressed apprehensions that a long-term administrative regime could inadvertently allow controversial individuals or remnants of the previous looting regimes to re-enter the management. The demands are immediate formation of a complete, honest, and professional board of directors, restoring the bank's ownership and shares to its genuine, original owners, establishing a special tribunal to try those involved in looting bank funds, implementing immediate steps to stabilize the bank and curbing negative propaganda, tracking down, freezing, and bringing back laundered wealth and assets from abroad. Besides, amending the Bank Company Act to permanently bar financial fraudsters from rehabilitation and withdrawing controversial statements regarding Islami Bank made in Parliament.

Bangladesh Bank (BB) has provided an emergency liquidity support of Tk 2,500 crore for Islami Bank Bangladesh PLC to help the Shariah-based lender mitigate its severe cash crunch and resume suspended clearing operations. The central bank approved the liquidity support on Sunday, allocating the special fund directly into Islami Bank’s current account maintained with the BB, according to sources in both institutions. Following the financial injection, the bank's halted cheque clearing system has resumed. According to a top executive at Islami Bank, the bank has been facing an exceptional spike in cash demand. "Deposits are almost non-existent at the moment, while everyone is rushing to withdraw their funds," the official said on condition of anonymity. The liquidity strain escalated further following recent leadership shifts and administrative disputes. Before Eid-ul-Azha holidays on May 24, bank's then-chairman M Zubaidur Rahman resigned. Later that evening, former Bangladesh Bank Deputy Governor Md Khurshid Alam was appointed as an independent director and new chairman of the bank. Currently, five independent directors on Islami Bank's board, including the chairman, are central bank appointees. Following these changes, protests broke out under the banner of the "Islami Bank Sachetan Grahak Forum", pressing a seven-point demand that includes the removal of the new chairman. The unfolding situation at Islami Bank also triggered heated debates between treasury and opposition benches in Parliament. Amid growing public discourse, panic withdrawals intensified among clients, prompting Islami Bank to formally seek Tk 10,000 crore in emergency financial assistance from the central bank. Sunday's Tk 2,500 crore fund injection marks the first major deployment to stabilise the institution.

Administrative action will be taken against anyone disrupting customer services, said Islami Bank acting Managing Director Md. Altaf Hossain on Thursday amid reports of a symbolic work stoppage at several branches. The warning came after a section of bank officials reportedly observed a one-hour ‘pen-down’ strike at multiple branches in response to a call from the ‘Sachetan Grahak Forum’ (Conscious Customers Forum), which has been protesting for the past three days demanding removal of newly appointed Chairman Md. Khurshid Alam. The forum on Wednesday urged employees to suspend work for an hour on Thursday in solidarity with its movement. Speaking at the bank’s head office in Dilkusha, Motijheel, Altaf Hossain clarified that the management had issued no instructions for any form of work stoppage. “There is no such directive from our side. If any official refuses to provide services, administrative action will be taken against them,” he said. Customer services were partially or fully disrupted for about an hour in some locations although bank officials largely refrained from making public comments. Responding to the situation, the acting MD said the bank’s staff remain committed to serving customers. “Our officers are fully ready to serve. If customers do not come forward for services, it is not possible for us to force it. It is also difficult to monitor the real-time situation of every branch from the head office,” he said. Asked about concerns over possible withdrawal pressure amid the ongoing unrest, Hossain acknowledged increased activity but said there was no cause for alarm. “If all depositors rush to withdraw their money in a single day, any bank in the world would collapse. That is a basic financial reality. But practically that never happens,” he said. He added that the bank has seen a rise in withdrawal pressure due to the prevailing situation, but it remains within manageable limits. “There is definitely some increased pressure due to the current situation, but it is still tolerable. There is no reason for panic. If any critical situation arises, it will be visible to everyone,” he added. The unrest at the Shariah-based lender began late last month following the resignation of former Chairman Prof. M. Zubaidur Rahman and the central bank's subsequent appointment of former Deputy Governor Md. Khurshid Alam to the post.

Leader of the Opposition and Bangladesh Jamaat-e-Islami Ameer Dr Shafiqur Rahman on Wednesday warned against any attempt to take over or control Islami Bank Bangladesh PLC, saying the people will not accept any such move. He alleged that the government is trying to hand over Islami Bank to individuals appointed during the previous “fascist” regime, adding that opposition leaders and activists were prepared to take to the streets to “rescue” the bank. The Jamaat ameer made the remarks while speaking at an Eid reunion held at a convention centre in the capital’s Mirpur area. He claimed that Tk 34,000 crore was looted from Islami Bank during the Awami League government, alleging further attempts to destabilise the banking sector. Shafiqur Rahman said any damage to Islami Bank will severely impact the country’s economy. He also urged the government to ensure stability in the banking sector and criticised the Bangladesh Bank governor over the current situation. Expressing concern over the country’s overall situation, the Jamaat chief said the nation could not continue in its present state, questioning the future of those involved in what he described as political repression.

A section of Islami Bank customers continued demonstration in front of the bank headquarters at Dilkusha in Motijheel area for the second consecutive day on Tuesday, demanding the resignation of newly appointed chairman Khurshid Alam and all members of the bank’s board of directors. The protesters under the banner of Islami Bank Conscious Customers Forum gathered in front of the bank’s headquarters around 9 am with placards. They alleged irregularities in the recent changes in the bank’s top management and called for immediate withdrawal of the board including the chairman to ensure transparency and protect customer interests. The demonstration continued till the filing of this report. Police deployed water cannons, armoured vehicles, and extra personnel to maintain order. The demonstrators accused Khurshid of having ties to the Chattogram-based S Alam Group and called for his immediate dismissal. Police used water cannons, tear gas shells and sound grenades to disperse protesters outside Islami Bank head office on Monday, triggering a clash that left demonstrators and policemen injured.  

Police used water cannons, tear gas shells and sound grenades to disperse protesters outside Islami Bank head office in the capital’s Dilkusha commercial area on Monday morning, triggering a clash that left demonstrators and policemen injured. The demonstrators under the banner of ‘Islami Bank Disgruntled Customers' Co-ordination Council’ and ‘Islami Bank Customer Forum’ were protesting the appointment of former central bank Deputy Governor Md. Khurshid Alam as the bank's new Chairman, alleging it bypasses proper board procedures and reinstates close associates of controversial S Alam Group. Demonstrators claimed over 100 people were injured during police action which could not be verified. Witnesses said hundreds of depositors, shareholders, and members started gathering in front of the Islami Bank Tower as early as 6:00 am. Carrying banners and festoons, they blocked the road and chanted slogans demanding the immediate resignation of the newly appointed Chairman, and reinstatement of Managing Director Omar Farooq Khan, who was recently sent on a mandatory leave. Tensions escalated at around 9:30 am when a large contingent of police equipped with water cannons and riot gear moved in to disperse the crowd. Law enforcers fired tear gas shells and used water cannons which triggered panic and chase and counter-chase throughout the commercial hub, said witnesses.

Islami Bank Bangladesh PLC will provide a motorcycle through a digital raffle draw on every banking day (Sunday-Thursday) for sending cash remittance through Ria Money Transfer. Remittance recipients will also get a key ring as a common gift. This offer will continue from 19 February to 18 March, 2026, on the occasion of Holy Ramadan. Md. Omar Faruk Khan, Managing Director of the Bank, inaugurated Islami Bank- Ria Nabil Mustafizur Rahman to be appointed MD of Sammilito Islami Bank Money Transfer Remittance Fiesta, as the chief guest on Tuesday, was held at Islami Bank Tower. Dr. Emil Ruban, Managing Director & Senior Regional Director of India and South Asia, Ria Money Transfer, spoke at the event as the guest of honor. Md. Altaf Hossain, Engr. Mohammad Jamal Uddin Mazumder and Dr. M Kamal Uddin Jasim, Additional Managing Directors addressed the program as a special guest. Md. Rafiqul Islam, Deputy Managing Director Presided over the program while Standard Bank rebranded as ‘Standard Islami Bank’ Rashedul Islam Talukder, Country Manager of Ria Money Transfer, Bangladesh, also spoke at the program, and Mohammad Shahadat Hossain, head of overseas banking.

Islami Bank Bangladesh PLC is facing a severe financial and managerial crisis due to years of irregular recruitment under S. Alam Group, according to officials. The bank’s management has recently begun efforts to restore order by assessing the competency of thousands of unqualified staff who were reportedly hired without proper procedures. Kamal Uddin Jasim, Additional Managing Director (AMD) of Islami Bank Bangladesh PLC (IBBL), said the bank is incurring a staggering annual loss of over Tk1500 crore due to the unauthorised, large-scale hiring of more than 8,000 unqualified and semi-literate people under the previous management linked to S. Alam Group. Many of these individuals were allegedly appointed in exchange of money and without public job circulars or exams, he said. The cost of maintaining these illegally appointed officers is estimated to be over Tk 1500 crore annually, translating to a total loss of more than Tk 10,000 crore for the bank over the past seven years, according to a Bangladesh Bank report. This massive financial burden, coupled with the looting of over Tk1.0 lakh crore from the bank makes the institution's future financial stability almost impossible, it said. Bangladesh Bank’s investigations also found that several employees had used fake educational certificates. The crisis intensified recently when approximately 90 percent of these employees boycotted a special competency test arranged by the current bank management to re-evaluate their professional competency. In a display of direct defiance, these officers have reportedly engaged in a campaign of slander against the bank, held press conferences, and issued threats to the present management. As part of these activities, the bank's official Facebook page was allegedly hacked on Friday morning, purportedly instigated by ‘outsiders’. A former director of Islami Bank expressed serious concern saying that customer funds may not be safe in the hands of these rebellious employees whose open defiance indicates that bank vaults or cash counters are not secure under their supervision. He warned that the bank may face a severe crisis if swift action is not taken. Officials said the irregular appointments had turned the once internationally reputed bank into a regional institution heavily influenced by the Chattogram-based group. Office space for proposed 'United Islami Bank' approved in Sena Kalyan Bhaban Many of the recruits reportedly spoke only in local dialects inside offices creating communication barriers and deteriorating customer service. They used the power and influence of S. Alam to mistreat colleagues, ignore instructions from superiors, and arbitrarily force transfers to preferred locations, often within the Chattogram region, said an official of HRD section of Islami Bank. Managers or senior officials who attempted to enforce rules were met with false allegations that threatened their posting or job security. The climate of fear created by their power and insolence kept the entire management, including zonal heads in a state of constant anxiety. The officials are still threatening to return to their positions after the next national election, along with S. Alam, said the official. Banking professionals have warned that such large-scale irregularities and fund misappropriation have undermined public confidence in the sector. Masrur Arefin, Managing Director of City Bank, at a progrmme of bankers recently said, “S. Alam alone has destroyed the entire banking sector.” Meanwhile, customers have also voiced frustration online. “The illegal bankers of Patiya are protesting to keep their jobs, but why aren’t they demanding the return of Tk 1 lakh crore allegedly smuggled by their ringleader S. Alam?” wrote Aminul Islam on social media.