Professor M Zubaidur Rahman, Chairman of Islami Bank Bangladesh PLC, resigned from his post on Sunday.

Rahman submitted his resignation letter to Bangladesh Bank.

The bank’s Managing Director, Md. Omar Faruk Khan, who was also on leave, reportedly submitted his resignation to the board of directors.

However, no final decision has been made regarding the MD as today's scheduled board meeting was canceled.

According to central bank sources, tension escalated following the assumption of office by the new government and appointment of Mostaqur Rahman as the Governor of Bangladesh Bank.

Disputes arose between central bank officials and Islami Bank’s top management over several key decisions.

Amid these disagreements, the board approved a one-and-a-half-month leave for Chairman Zubaidur Rahman on April 12, with the condition that he attend meetings online.

Recently MD Faruk Khan was also sent on leave.

The resignations coincided with demonstrations at the bank's head office today (Sunday).

A group of clients and bank officials staged a protest beneath the headquarters, demanding the resignation of Chairman Rahman while simultaneously protesting against any move to oust MD Faruk Khan.

Prof Rahman was appointed as an independent director of Islami Bank by the central bank in July 2025 during the tenure of former Governor Dr. Ahsan H. Mansur, and was subsequently elected as the Chairman.

Both Rahman and Khan could not be reached by phone for comment.