Bangladesh Bank (BB) has reconstituted the boards of three banks, including Union Bank and Global Islami Bank, previously controlled by S Alam Group. The changes were announced in three separate notifications on Tuesday.

Union Bank and Global Islami Bank, both previously under the control of Saiful Alam, chairman of S Alam Group, have seen their boards dissolved and restructured with new independent directors. Additionally, the board of United Commercial Bank (UCB) has been reshuffled, appointing shareholder directors. UCB was previously controlled by the family of the late Awami League leader Akhtaruzzaman Chowdhury.

The S Alam Group, a major business conglomerate based in Chattogram, has retained significant influence over several banks. However, with the latest reconstitution, Bangladesh Bank has now altered the boards of five banks associated with the group, including Islami Bank, Social Islami Bank, and National Bank.

Governor Ahsan H. Mansur of Bangladesh Bank indicated that more boards of banks affiliated with S Alam Group will be restructured gradually. He made this statement during a meeting on Tuesday with a delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Governor Mansur also assured that the Letter of Credit (LC) restrictions imposed on these banks will be lifted following the board reconstitutions, according to officials familiar with the meeting.

At present, S Alam Group continues to control First Security Islami Bank and Bangladesh Commerce Bank.