Dhaka, June 14, 2026: Bangladesh Bank has dissolved the entire board of directors of Islami Bank Bangladesh PLC, citing the need to protect depositors’ interests, maintain financial stability, and safeguard public interest.
In a notification issued on Sunday, the central bank announced the cancellation of the appointments of Chairman Khurshid Alam and all other directors of the bank. The move was made under Sections 45 and 47(3) of the Bank Company Act, 1991.
Following the decision, Bangladesh Bank Executive Director Mohammad Zahir Hossain has been entrusted with exercising all powers and responsibilities of the board until further notice.
The development came after an emergency meeting held at Bangladesh Bank headquarters, where Governor Mostaqur Rahman met with Islami Bank’s senior management team, including Acting Managing Director Altaf Hossain, two Additional Managing Directors, and six Deputy Managing Directors. During the meeting, bank officials briefed the central bank on the institution’s current liquidity situation and recent developments.
The country’s largest private commercial bank has been facing mounting pressure in recent weeks as concerns over its leadership triggered a wave of cash withdrawals by depositors. To support liquidity management and restore confidence, Bangladesh Bank recently announced a Tk 2,500 crore liquidity facility for the bank.
The leadership crisis intensified after former Chairman Professor M. Zubaidur Rahman resigned on May 24. On the same day, former Bangladesh Bank Deputy Governor Mohammad Khurshid Alam was appointed as chairman. However, the appointment sparked strong opposition from a section of employees, shareholders, and customers.
Under the banner of the Islami Bank Conscious Customers Forum, demonstrators have been staging protests for more than a week outside the bank’s head office in Motijheel. Protesters alleged that the appointment of a controversial figure could undermine the ongoing reform process within the bank.
The protest group has also announced a programme to surround Bangladesh Bank on Tuesday if their demands are not met.
The latest intervention by the central bank marks a significant step in efforts to stabilize Islami Bank and restore public confidence in the country’s largest Shariah-based financial institution amid growing concerns over governance and liquidity.
