Audit insiders say the recruitment process was not only opaque, but pointed to an organised pattern designed to bypass standard hiring systems
Representational Image.
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Representational Image.
Highlights:
- Thousands hired without ads, tests, or interviews during S Alam era
- Recruitment policy changed to bypass standard hiring procedures
- Majority hires came disproportionately from Chattogram, especially Patiya
- Exam standards lowered significantly to favor selected candidates
- Promotions and senior roles granted without required experience
- Thousands hired beyond needs, costing bank massive extra expenses
Thousands of officers were recruited into Islami Bank Bangladesh during the seven years it was controlled by S Alam Group without national newspaper advertisements, written tests, and in many cases even oral interviews during the Awami League regime – raising fresh questions over governance standards in Bangladesh’s banking sector from that era.
According to reports by the Bangladesh Bank and four audit firms, from 2017 when S Alam took control of the bank until August 2024, a total of 10,832 officers were recruited. Of them, 8,542 were appointed without any advertisement in national dailies. The bank’s recruitment policy was amended to legitimise the process.
At the time S Alam assumed control, the bank employed 13,515 staff. Over seven years, that figure rose to 21,706 although around 2,000 employees retired during the same period. The total recruitment reached 12,386, with roughly 75% hired without any public recruitment notice.
Infograph: TBS
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Infograph: TBS
Audit insiders say the recruitment process was not only opaque, but pointed to an organised pattern designed to bypass standard hiring systems.
M Kamal Uddin Jasim, additional managing director of Islami Bank, said the findings have exposed serious flaws in the recruitment process during the S Alam era.
“Recruitments during that period were carried out without any advertisements, written or oral exams, with preference given to a single region,” he told TBS.
He added, “In consultation with the central bank, we arranged competency assessments for officers recruited during that time. They initially filed writ petitions instead of sitting for exams. The court ruled in favour of the bank, allowing the test to proceed. Even then, many refused to participate, while a large group from Chattogram intimidated those willing to sit for the exam.”
He added that Islami Bank subsequently terminated them under HR policy. “Now the central bank is reassessing how flawed the recruitment process was.”
Meanwhile, the central bank has formed a seven-member committee to investigate allegations of irregular recruitment in six Islamic banks, including Islami Bank, during S Alam’s control. The panel will also review dismissals and other employment decisions made over the same period.
Policy clause that opened floodgates
Audit reports say the bank amended its human resources policy to legitimise the recruitment process. Clause 7.04 of the policy stated: “In case of exigency, the Managing Director & CEO of the Bank may appoint manpower…relaxing the above recruitment formalities.”
Using this clause, regular recruitment practices – such as public advertisements, written tests and competitive selection – were largely ignored.
Instead, an informal system was introduced for collecting CVs. Boxes labelled “General”, “Cash”, “Male”, “Female”, “Diploma” and other categories were reportedly placed at the group chairman’s residence in Patiya and an office in Asadganj, Chattogram.
Applicants submitted CVs into these boxes, from where selected applications were sent to the bank’s head office. Appointment letters were then issued directly according to prepared lists, without open competition.
Audit sources described the system as a “closed recruitment loop”, making participation by outside candidates virtually impossible.
Regional bias: One district dominates hiring
One of the most controversial findings concerns regional imbalance. Audit reports show around 8,104 of those recruited were residents of Chattogram district. Of them, 5,148 came from Patiya upazila alone.
In 2017, the bank had 811 staff in Chattogram. By 2024, that number had risen to 7,858 – an increase of around 870%.
In Patiya, staffing rose from just 42 to 4,331, representing an increase of more than 10,000%.
Bangladesh Bank observed that such hiring severely damaged inter-district balance, effectively excluding candidates from other regions.
The bank also brought in 439 people from other group-linked institutions, including First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, Bangladesh Commerce Bank, Reliance Finance and Padma Life Insurance. Of these, 193 were hired without advertisements.
Analysts say this suggests not only bias, but a network-based control structure.
Lowered standards in recruitment exams
Serious irregularities were also found in probationary officer recruitment.
For the 24th batch in 2019, 840 CVs were collected without advertisement. Of 763 candidates who sat the written test, only 36 met the 50% pass mark.
The standard was then relaxed, and 552 candidates scoring only 20% were called for interviews. Another 12 were included without sitting the written test at all. All candidates in that batch were from the Chattogram region.
In the 25th batch in 2021, audit reports say interview marks were increased from 25 to 50 to recruit 117 Chattogram-based candidates. As a result, 110 of the final 150 recruits – 73% – were from Chattogram.
Similar practices were found for Trainee Assistant Officer (General) and (Cash) posts. Between 2017 and 2024, 2,232 people were recruited as TAO (General) and 2,828 as TAO (Cash), most without public circulars.
Audit officials say merit-based screening was effectively dismantled.
DMD promotions despite inadequate experience
Under Bangladesh Bank policy, appointment as Deputy Managing Director (DMD) requires 20 years’ experience, including 21 years cumulative banking service and prior experience as assistant managing director.
However, after S Alam took over, his personal secretary Akij Uddin became DMD with only eight years’ banking experience, according to the audit findings. Despite a requirement of two years in the preceding role, he allegedly had only one year and four months.
Another Islami Bank DMD, Miftah Uddin, reportedly became DMD with only 17 years’ experience instead of the required 20, and with one year instead of the required two in the prior post.
83 officers given accelerated promotions
Bangladesh Bank inspections found 83 senior officials received abnormal promotions between 2017 and August 2024.
Among them, DMD Muhammad Qaiser Ali received three early promotions. DMD Miftah Uddin reportedly received seven early promotions. DMD Mohammad Sabbir got four early promotions, EVP Mohammad Habibur Rahman four, Ehsanul Islam three, and SVP Nazrul Islam two.
Under the 2017 promotion policy, each promotion up to DMD required at least three years in post, along with minimum 75% scores in personal, business and Shariah performance metrics. Fast-track promotions required 90%.
Investigators reportedly found no evidence of required service duration or interview records.
Nearly 2,900 excess staff hired beyond approved manpower
Reports say nearly 3,000 additional employees were hired beyond approved manpower needs in four categories, costing the bank around Tk100 crore annually in extra salary expenses.
Over seven years of S Alam control, that excess cost reportedly reached around Tk500 crore.
These included TAO (Cash): 2,866 hired, with 991 excess; TAO: 2,340 hired, with 809 excess; messenger-cum-guard: 1,617 hired, with 559 excess; rural development scheme: 1,525 hired, with 527 excess.
What economists and bankers say
Zahid Hussain, former lead economist of World Bank’s Dhaka office, said having most recruits from one district over seven years reflected extreme favouritism.
He said loyalty appeared to have been prioritised over merit, damaging professionalism and weakening the bank.
He also described regulatory silence despite such large-scale non-compliance as negligence, warning that validating irregular hires now would set a dangerous precedent for other banks.
Syed Mahbubur Rahman, managing director & CEO of Mutual Trust Bank, said all banks normally recruit entry-level staff through written and oral exams.
“To get skilled officers, there should be no compromise here,” he said, adding that appointing people without advertisements or tests was deeply troubling.
He said banks safeguard depositors’ money, and random hiring without rules destroys governance.
Action taken after S Alam lost control
After 5 August, when Islami Bank was freed from S Alam’s control, the bank – based on Bangladesh Bank and external audit findings – decided to conduct a special competency assessment test for officers recruited between 2017 and August 5, 2024.
Two employees filed writ petitions in the High Court seeking suspension of the exam. The matter was later settled, and the central bank stated there was no barrier to holding the test.
The bank then arranged the exam through the Institute of Business Administration on 27 September 2025.
According to the bank, only 402 of 5,374 eligible officers sat the exam. All participants passed and remain employed.
Meanwhile, 261 officers recruited through regular processes during 2017-2024 were exempted.
Another 4,972 officers boycotted the test in protest. Some allegedly harassed and threatened those willing to participate. They also staged work stoppages, road protests, human chains and press conferences, while allegedly spreading misleading information and damaging the bank’s image on social media.
The bank described these actions as breaches of discipline and policy. Following board advice, disciplinary action was taken, and under Chapter 09, Clause 1.02 of the HR policy, their employment was terminated.
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