Bangladesh Bank on Monday declared that no political activities or vested interest-driven motives will be tolerated surrounding Islami Bank Bangladesh.

The central bank also assured that a fresh, acceptable board of directors consisting of honest, qualified, and highly competent individuals will be formed very soon to manage the institution.

Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan disclosed the central bank’s stance to journalists on Monday afternoon.

"Islami Bank is a critical institution within the country’s financial ecosystem. If this bank faces damage, it will trigger a severe negative spillover across the entire banking sector. Therefore, no one will be allowed to play politics over Islami Bank. An acceptable board of directors will be constituted shortly," Khan said.

The statement came hours after members of the Islami Bank Shacheton Grahok Forum (Conscious Customers Forum) staged an intensive demonstration and sit-in program in front of the main entrance of Bangladesh Bank on Monday morning.

The protesters issued an ultimatum demanding the complete reorganisation of the bank’s board of directors within 24 hours, warning of tougher programs if the deadline is missed.

The forum leaders demanded that any individuals linked to the controversial S Alam Group must be strictly barred from entering the upcoming board.

They also demanded the immediate reinstatement of original sponsors and shareholders who held ownership in the bank prior to 2017.

Earlier on June 16, the forum submitted a memorandum to the Governor of Bangladesh Bank pressing similar demands.

Bangladesh Bank dissolved the entire board of directors of Islami Bank on June 13 and appointed its Executive Director, Mohammad Zahir Hossain, to oversee the overall corporate operations.