Islami Bank Bangladesh is currently facing an internal crisis following a mandatory special competency assessment examination for a large number of its employees, most of whom were allegedly appointed irregularly over the past seven years.
The bank organised a competency exam through the Institute of Business Administration (IBA) at Dhaka University on September 27. But a portion of employees were absent to attend the examination. As a result, Islami Bank management dismissed the jobs of the employees who did not join the examination for disciplinary and misconducts with the jobs.
Islami Bank, which has approximately 21,000 employees, is facing allegations that since the S. Alam Group took control in 2017 up to August 2024, it secretly hired 7,224 people in various positions without issuing circular in newspapers, said member of current board of director of the bank.
Critics allege that a vast majority of these employees more than 4,500 people were hired solely from Patiya Upazila of Chattogram, excluding qualified candidates from 63 other districts and severely undermining the bank's discipline, he opined.
The recruitment process allegedly involved widespread corruption, with S. Alam’s personal secretary Akiz Uddin and his associates reportedly collecting several hundred crore of taka in exchange for the jobs, which also revealed in Bangladesh bank’s investigation, said the board of director.
Furthermore, it is claimed that around 2,500 of the recruited officials submitted fake certificates, primarily from Chattogram-based institutions like BGC Trust, Port City, and Southern University. The bank alleges that when it tried to verify the certificates with BGC Trust and Port City, they refused to cooperate. Some officials have already faced action for submitting fake certificates.
These officials are also blamed for a sharp decline in customer service, unprofessional conduct, lack of skill, and in some cases, embezzlement of customer funds, revealed in the investigation.
To justify the competence and skill, the bank arranged a special evaluation test through the IBA at Dhaka University on September 27. A total of 5,385 employees were scheduled to sit for the exam.
However, only 414 officials eventually participated. It is alleged that many candidates were dissuaded by a group of officials who threatened those attempting to travel to Dhaka for the exam with violence, arson, and death.
Following the low attendance, the bank instructed the non-participating officials to refrain from all operational activities until further notice. On September 28, a group of these officials attempted to create disorder at the bank's Patiya branch, which was subsequently managed by the police.
In response to the protests and "misinformation" being spread by the officials through various media outlets, Islami Bank issued an official statement.
The bank confirmed that several officials had filed a writ petition against the exam, but the High Court directed Bangladesh Bank to resolve the matter. The BB's Banking Regulation and Policy Department (Division-2) subsequently clarified that:
"Islami Bank Bangladesh PLC, being a private sector profitable institution, its officers/employees' service is governed by the country's prevailing laws, rules, and terms of appointment... the bank has the independent authority to make decisions while adhering to the country's laws and regulations. Therefore, the decision to hold the special competency assessment exam and whether or not to retain someone's service falls under the bank's own jurisdiction."
Islami Bank stressed that by conducting the special competency evaluation test through IBA, DU, no contempt of court or legal violation has occurred. The bank, which operates as a Shari'ah-compliant institution, urged its customers and well-wishers not to be misled by the recent "misinformation" being spread by the irregularly recruited personnel, said in the statement.