United News of Bangladesh

Mohammad Zahir Hussain, executive director of Bangladesh Bank and the sole representative of the Board of Directors of Islami Bank Bangladesh PLC, on Wednesday emphasised that depositors are the true owners of the institution, assuring them that the bank will be run professionally to serve the general public. "As long as Bangladesh exists, Insha'Allah, Islami Bank will also survive with glory," he said while speaking as the chief guest at a clients' get-together organised by the bank at its Islami Bank Tower Corporate Branch. "It will not be a bank for any single individual, group, or community; it will be a bank for the general people", Zahir added. Highlighting the financial structure of the institution, he noted that customer deposits stand at nearly Tk 1.75 lakh crore, whereas the share capital is Tk 6,500 crore, making the share ratio a negligible fraction of the total deposit volume. The sole representative of the board assured customers that full trust and authority have been placed in the bank's management team, composed of professionals with 30 to 35 years of experience. Emphasising that the board's role is strictly limited to policy-making while professionals manage operations, he urged depositors to support the bank and help increase its deposits, expressing firm confidence that the bank will regain its lost glory and achieve new heights in a short period. The event was presided over by Executive Vice President and Head of the Corporate Branch Mohammad Kutub Uddin, while Senior Vice President Abdul Latif delivered the welcome address. Acting Managing Director Md Altaf Hossain and Executive Vice President Mahmud Hossain Khan addressed the event as special guests. Several representatives spoke on behalf of the clients, according to a press release.

The 'Islami Bank Sachetan Grahak Forum' (Islami Bank Conscious Customers Forum) on Monday announced a fresh series of protest programs demanding the restoration of the bank's ownership to its original owners, and the formation of a new board of directors comprising honest and professional individuals. The forum also demanded the recovery of looted funds from Islami Bank Bangladesh PLC, trial of those responsible, and full security for depositors' money. Leaders of the forum raised the demands at a press conference held at the Islami Bank Tower premises in the capital's Dilkusha on Monday afternoon, where the forum's convener, Professor Nurunnabi Manik, read out a written statement. Professor Manik highlighted that Islami Bank is not just a financial institution but the country’s first Shariah-based bank and a symbol of trust for millions of customers. "It handles a major portion of the country's remittance inflow, SME financing, and public savings. Therefore, its stability is vital for the national economy," he said. He noted that since May 24, customers have been continuously protesting through human chains, memorandums, press conferences, and meetings with the Bangladesh Bank Governor to ensure good governance and depositor security. The forum also reiterated its demand to reinstate former Managing Director Omar Faruk Khan. While acknowledging that Bangladesh Bank has removed former Chairman Khurshid Alam and that central bank liquidity support has brought some relief to depositors, the forum leaders noted that structural changes are still lagging. They highlighted that a previous announcement to repeal Section 18/A of the Bank Company Act has not yet been formally codified into law. The customer forum outlined a 7-point charter of demands, which include forming an honest and professional board, returning ownership to genuine stakeholders, setting up a special tribunal to try bank looters, recovering stolen assets, an confiscating the wealth of the corrupt. To press home their demands, the forum announced a fresh agitation schedule: July 9: A protest march from Islami Bank Tower to the National Press Club. July 14: Sit-in programs in front of various bank branches across district towns. July 18: A grand rally of depositors in front of the National Museum in the capital's Shahbagh. Forum Member Secretary Motasim Billah and a large number of bank customers were present at the press conference.

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.