Islami Bank holds virtual board meeting at night amid customer protests

Islami Bank Bangladesh PLC held a virtual board meeting on Monday night (1 June), chaired by its newly appointed Chairman Khurshid Alam, whose resignation was demanded by protesting customers throughout the day.

Confirming the development, Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan said five board members participated in the meeting virtually.

He said the board accepted the resignation letter recently submitted by Managing Director Omar Faruk Khan and decided to continue the bank’s operations under acting MD Md Altaf Hossain until a permanent appointment is made.

Asked whether the online meeting had been arranged under pressure from Bangladesh Bank, Arief denied the allegation, saying no such pressure had been exerted by the central bank. He added that the meeting was organised with Bangladesh Bank’s approval.

Responding to a question about holding a board meeting outside banking hours, he said an in-person meeting would have had to take place during official banking hours, but there were no restrictions on conducting an online meeting at night.

Chairman Khurshid Alam and Independent Director Khurshid Wahab could not be reached for comments.

The board meeting had originally been called to facilitate the new chairman’s formal assumption of duties. However, the planned in-person session could not take place due to customer protests.

Customers of the bank staged demonstrations in front of its head office in Dhaka’s Dilkusha area from Monday morning, demanding the cancellation of the new chairman’s appointment. Police dispersed a human chain programme using sound grenades and water cannons earlier in the day.

The board meeting had initially been scheduled to take place under the leadership of the new chairman.

Former chairman Professor M Zubaidur Rahman, an independent director appointed by Bangladesh Bank, resigned on 24 May, the last working day before Eid. On the same night, Bangladesh Bank appointed former deputy governor Md Khurshid Alam as the new chairman.

Following political changes in August 2024, Khurshid Alam had been forced to resign from a previous position. Since his latest appointment, a political group associated with the bank has opposed the decision through various platforms.

Programmes were reportedly held across the country during the Eid holidays under the banner of a customer forum, culminating in Monday’s demonstration outside the bank’s headquarters in Dhaka.