United News of Bangladesh

Bangladesh Bank is set to conduct an auction for the '9th Bangladesh Government Investment Sukuk' (CAFDRIRP Socio-Economic Development Sukuk) tomorrow (Monday, June 22, 2026. The auction will be managed by the Islamic Securities Section under the Debt Management Department of the central bank. The government aims to raise Tk 5,600 crore from the market through this Islamic bond issue. The funds raised from this Sukuk will be utilized to finance the state-led project titled 'Cyclone Amphan and Flood Damaged Rural Road Infrastructure Rehabilitation Project (CAFDRIRP)'. Key Features of the 9th Sukuk Bond: Issue Amount: Tk 5,600 crore. Tenor: 05 years. Profit Rate (Rental): 9.75 percent per annum. Profit Distribution: Profits will be distributed to investors every six months (semi-annually). Sukuk Type: It is structured as an 'Ijarah Sukuk' (lease-based Shariah bond). Minimum Investment: The minimum investment threshold is set at Tk 10,000. Guidelines and Facilities for Investors: According to the central bank notification, all resident and non-resident individuals as well as institutional entities are eligible to invest in this Shariah-compliant government instrument. Investors can participate in the Sukuk through their respective bank or financial institution accounts. The entire bidding process will be executed electronically via Bangladesh Bank's dedicated 'Shariah Securities Module (SSM)'. First-time investors must contact their respective banks prior to the auction date to open a unique 'Sukuk Investor (SI) ID' within the SSM system. However, existing investors who already possess an active SIID do not need to open a new one. Auction Timeline: The central bank stated that the bidding window will remain open on June 22, 2026, from 10:00 AM to 3:00 PM. Financial analysts and banking insiders point out that government Sukuks have emerged as highly attractive, low-risk, and tax-efficient asset classes in Bangladesh. Amid volatile equity market conditions, a guaranteed 9.75 percent annualized profit rate backed by sovereign security offers a highly lucrative investment gateway for Islamic commercial banks, conventional banks with Islamic windows, non-banking financial institutions, corporate treasuries, and high-net-worth retail investors seeking secure returns. Detailed information, including the official Sukuk Prospectus and FAQs, is available on the Bangladesh Bank website (www.bb.org.bd).

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.

The stability of Islami Bank Bangladesh PLC (IBB) is an indispensable element for the country’s overall economic health, said Mohammad Zahir Hussain, Executive Director of Bangladesh Bank and authorized representative for the bank's board affairs. "Islami Bank is a systemically important bank in Bangladesh's financial system. This institution is closely inter-related with the country's imports and exports, remittance, foreign trade, the businesses of millions of entrepreneurs, and the financial activities of crores of people," he said. He made the remarks as the chief guest during an exchange of views meeting with the officials and employees of IBB held at the Islami Bank Tower in Motijheel on Wednesday. Senior executives from the head office attended the meeting in person, while employees from branches across the country joined via a virtual platform. Reflecting on the challenges faced by the country's largest private commercial bank in recent times, the central bank representative assured employees that the institution's core strengths remain intact. "Over the past few years, this bank has faced various adverse situations. However, the real strength of an institution is never lost; that strength can be revived through proper leadership, correct guidance, and collective efforts," Hussain added. He noted that Bangladesh Bank has recently taken several critical and timely decisions to safeguard the country's overall financial stability. Moving forward under the central bank's guidance, IBBPLC's operations will be conducted entirely on the principles of professionalism, transparency, and accountability, he said. Hussain also revealed that the regulatory body is working toward forming a strong, efficient, and widely acceptable Board of Directors for Islami Bank in due course. He urged all officers to discharge their duties with the highest level of honesty and professionalism. The meeting was presided over by Md. Altaf Hossain, Acting Managing Director of Islami Bank. Additional Managing Directors Engr. Mohammad Jamal Uddin Mazumder and Dr. M Kamal Uddin Jasim also addressed the gathering.

Bangladesh Bank on Wednesday urged all types of media to practice responsible journalism when reporting on the country's banking sector, cautioning that arbitrary calculations of "distressed loans" create unnecessary panic among the public. In a press release issued by the Department of Communications and Publications (DCP), the central bank clarified its position regarding recent media analyses derived from the newly published ‘Financial Stability Report (FSR) 2025’. The central bank noted that following the release of the FSR 2025, several newspapers and media published reports claiming that the banking sector's "distressed loan" ratio ranges anywhere between 45 percent, 59 percent, or even 60 percent based on their own calculations. Dismissing these figures, Bangladesh Bank stated that no internationally recognized financial policymaking body has defined a standard definition for "distressed loans." Generally, loans that yield no income or where installments are default are treated as distressed. However, the central bank clarified that unclassified rescheduled loans cannot be clubbed into this category because borrowers are actively and regularly paying back their designated installments. Furthermore, the banking regulator pointed out that under international best practices, written-off loans are completely removed from a bank's balance sheet, meaning they also cannot be mathematically categorized as distressed loans. According to the official data re-verified by the central bank, the actual Non-Performing Loan (NPL) or default loan ratio in the country's banking sector stood at 30.60 percent as of December 31, 2025. Bangladesh Bank expressed strong reservations over combining actual default loans with legally rescheduled and written-off loans to project an inflated distressed loan ratio. The regulator warned that such reporting distorts macroeconomic realities and sends highly misleading signals to both domestic and international financial stakeholders regarding the health of Bangladesh's economy. Considering the extreme sensitivity of the financial architecture and overall national interest, the central bank requested editors, reporters, and media houses to ensure maximum objectivity, depth, and precision when disseminating banking and economic data.

Bangladesh Bank (BB) Governor Md Mostaqur Rahman has expressed agreement in principle with the seven-point demand put forward by the Islami Bank Sachetan Grahak Forum to restore corporate governance in Islami Bank Bangladesh PLC, the platform said on Wednesday. It said central bank Deputy Governor Kabir Ahmed conveyed this to the forum leaders during a meeting at the central bank headquarters. Speaking to journalists after the meeting, the convener of the forum Prof Nur Nabi Manik said the governor took the matter positively. He said the deputy governor told them that the central bank chief agreed in principle with their demands. The forum chief reiterated their core position, emphasising that individuals tainted by financial irregularities, loan scams, or institutional plunder must be permanently barred from occupying positions on the board of directors or holding the post of chairman at Islami Bank. "The new board must consist entirely of highly ethical, professional, and politically neutral individuals," Manik added. He expressed optimism that rebuilding the board based on their seven-point charter will heavily reinforce depositor confidence and restore structural stability to the country's largest Shariah-based commercial lender. Forum leaders assured the central bank that once their demands are visibly implemented on the ground, they will disseminate positive messages to millions of depositors across the country, playing a supportive role in rebuilding the bank's operational legacy. The demands of the forum are formation of an independent, capable, and professional board of directors; reviewing the controversial ownership and shareholding changes of 2017 to reinstate the rights of genuine, original owners; establishing a special tribunal to fast-track the trial of those accused of plundering bank funds; immediate recovery of looted capital and confiscation of illicitly acquired assets; refraining from controversial or arbitrary regulatory decisions to curb panic and volatility across the banking sector; amending Section 18(a) of the Bank Company Act to close rehabilitation loops for financial fraudsters; and withdrawing misleading political statements regarding the bank's health made in Parliament.

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 Deputy Governor Habibur Rahman on Tuesday said innovative financial instruments like Orange Bonds can play a transformative role in advancing climate resilience, women's empowerment and inclusive growth. “The Orange Bond is a historic milestone for our capital market,” he said, highlighting the country's first Orange Zero Coupon Bond issued through Sajida Foundation. The deputy governor was speaking as chief guest at the 'Orange Economy Summit 2026: Dhaka', jointly organised by Dhaka Stock Exchange (DSE), Impact Investment Exchange (IIX) and Policy Research Institute of Bangladesh (PRI) at the DSE premises He reaffirmed Bangladesh Bank's full backing to attract $100 million in Orange investment by 2030, underscoring the importance of positioning Bangladesh as an attractive investment destination through inclusive and sustainable financing. The summit centred on the potential of a $100 million investment under IIX's Orange Climate Fund for Bangladesh, development of the country's Orange Capital ecosystem, and the role of capital markets in achieving long-term, inclusive and sustainable economic growth. In her welcome address, DSE Managing Director Nuzhat Anwar expressed satisfaction at hosting the summit, saying economic growth must go hand in hand with social inclusion and climate resilience to ensure sustainable development. She noted DSE's commitment to sustainable finance, corporate governance and implementation of international standards, adding that such initiatives would help raise awareness of Orange economy instruments and strengthen the regulatory framework for capital market development. IIX Founder and CEO Professor Durreen Shahnaz said building a robust and inclusive financial market is indispensable for Bangladesh's long-term sustainable growth amid its LDC graduation. She identified vast investment potential in the readymade garments, agriculture, energy transition and financial services sectors, saying deepening the capital market is essential to unlock that potential. Describing the 'Orange Movement' as a global initiative to build inclusive capital markets, Shahnaz said IIX is working to mobilise $10 billion by 2030. She disclosed that IIX has invested over $18 million in Bangladesh over the past decade and announced that $100 million has been earmarked for Bangladesh under IIX's $1 billion Orange Climate Fund. PRI Chief Economist Ashikur Rahman presented the keynote paper titled 'Building an Orange Capital Ecosystem in Bangladesh', noting that the country must overcome challenges including job creation, climate risk management and increased investment in productive sectors to achieve LDC graduation and a trillion-dollar economy. Ashik said the groundwork has already been laid through Green Bonds, Social Bonds and the country's first Orange Bond, and what is now needed is policy support, market-driven innovation and attraction of international capital to build a strong Orange Capital market. The summit concluded with a session on 'Experience Sharing from Emerging Markets', moderated by IIX Senior Director (Research and Government Relations) Priyank Tiwari. IIX Indonesia's Antya Widita and IIX Director of Impact Partners (Investment Banking) Jonathan Abeywickrema shared experiences on inclusive financing, sustainable investment and the role of Orange Capital in capital market development across emerging economies, while also exploring how international best practices can be applied in the Bangladesh context.

Mohammad Zahir Hussain, chairman (Current charge) of Islami Bank Bangladesh PLC, on Monday announced that a new, fully independent and neutral board of directors will be formed very soon to manage the country's largest private commercial bank. Zahir, who is also an executive director of Bangladesh Bank, was tasked with leading a single-member interim board following the dissolution of the entire board on Sunday. Now entire board of Islami Bank dissolved; administrator takes charge to maintain order Speaking to reporters at the bank’s head office in the capital's Dilkusha area, he also urged depositors to carry out their banking transactions smoothly and restore their faith in the institution, stating that "there is no scope for looking back now." "A complete five-member board of directors is in the process of being formed. The screening and verification process is currently underway. We want to appoint completely neutral and qualified individuals who can run this bank with utmost efficiency. I hope a strong, fair, and impartial board will be visible very shortly," Zahid said. He clarified that he is currently overseeing the bank's affairs under a temporary, single-member board framework with the primary objective of ensuring that the daily operations and services of the financial institution remain unhindered. At the press briefing, bank’s acting Managing Director Md Altaf Hossain expressed hope that depositors who had previously withdrawn their funds will return to the bank as stability is restored. He further highlighted that initial data from the bank's major branches indicates a significant positive shift in customer behaviour.  "Information gathered from our prominent branches reveals that account closures have dropped by nearly 75 percent compared to previous weeks. This is a clear indicator that public confidence is steadily returning to Islami Bank," Altaf said. Senior executives and high officials of the bank were also present at the briefing.

Association of Bankers, Bangladesh (ABB) has welcomed the central bank’s decision to dissolve the existing board of directors of Islami Bank Bangladesh PLC,  describing the move as a timely and prudent step to restore stability across the financial sector. A statement issued on Monday from the office of ABB Chairman and Managing Director of City Bank, Mashrur Arefin, expressed relief over the central bank's intervention, noting that the ongoing crisis at Islami Bank had spiraled beyond a single institution and threatened the broader banking industry. Now entire board of Islami Bank dissolved; administrator takes charge to maintain order According to the release, the apex body of bank executives had formally conveyed its deep concerns to the Governor of Bangladesh Bank on June 10, warning of the systemic risks associated with the unfolding situation. We conveyed that an early resolution would be beneficial for the industry, as the situation at Islami Bank was no longer an issue concerning a single institution; its impact was being felt across the banking sector, the ABB statement said.  Given that the dispute had acquired severe political overtones, the association had previously advised the regulator to seek a resolution through dialogue and consensus among relevant stakeholders. In this context, we believe the decision taken yesterday by the central bank is commendable. We hope it will restore stability at Islami Bank and rebuild the confidence of its depositors, investors, and stakeholders, the statement added. Highlighting the massive footprint of the country’s largest private commercial bank, the ABB emphasised that the stability of Islami Bank is inextricably linked to the national economy. The bank boasts nearly 30 million customers, a vast deposit and investment portfolio, the nation's largest remittance network, and a commanding share in international trade finance. The association pointed out that recent "mob-driven protests" at the bank's headquarters triggered widespread anxiety within the financial fraternity regarding institutional governance, liquidity preservation, and the confidence of both domestic depositors and foreign investors. The ABB expressed optimism that the appointment of an interim authority would allay these pressing concerns. The bankers' association outlined critical expectations for the revitalized institution, calling for substantial progress in establishing robust good governance, strict accountability, a banking environment entirely free from political influence, and the aggressive recovery of the bank's massive volume of non-performing loans (NPLs).