Islami Bank PLC is currently grappling with a profound leadership, policy, and confidence crisis.
This major and long-established Sharia-based private bank in Bangladesh now has vacant positions for both its Managing Director (MD) and Chairman.
Recently, MD Monirul Moula was forced into retirement amid allegations of corruption and was subsequently arrested.
Meanwhile, Acting Chairman Obayedullah Al Masud resigned due to accusations of financial irregularities and mismanagement. No new appointments have been made, leaving the bank effectively leaderless.
This vacuum is not seen as a mere accident but rather the result of a planned conspiracy, according to many. Bank insiders and analysts allege that a powerful group is actively working to destroy Islami Bank, with Bangladesh Bank’s decisions and role raising numerous questions.
Crisis deepens amid leadership vacuum :
Currently, the bank is managed solely by an Acting MD, Omar Faruk Khan. However, without a permanent appointment, policy-making has stagnated, leading to clear disruptions in operations. Various projects, loan approvals, employee promotions, and customer services are all experiencing instability and uncertainty.
Amid this, the Board of Directors meeting scheduled for Sunday (20 July) was postponed for strategic reasons. Sources indicate that Bangladesh Bank sent an “unspoken directive” to appoint a left-leaning independent director as chairman. However, the group controlling the bank objected, resulting in the meeting being canceled for “unavoidable reasons” to block this appointment.
S Alam Group’s domination, foundation of destruction :
Over the past decade, the Chattogram-based S Alam Group has exerted significant influence over Islami Bank. With the silent support of the Awami League government, they reshaped the board of directors, loan distribution, recruitment, and even internal policies to suit their interests. According to investigative agencies, S Alam Group secured approximately 30,000 crore taka in loans through its various entities, a significant portion of which remains unpaid.
During S Alam Group’s control, the bank witnessed repeated irregularities, favoritism, and secretive deals leading to financial misappropriation. The bank’s IT department allegedly played a role akin to a “thief’s accomplice.” Islami Bank has become a symbol of looting in the banking sector.
Central Bank’s silent complicity ? :
Banking sector analysts argue that Bangladesh Bank had a responsibility to curb Islami Bank’s irregularities and restore confidence. Instead, not only has it remained silent, but its frequent policy changes have further complicated the situation.
Bank employees question, “Why did Bangladesh Bank stay silent while billions of taka were looted in plain sight?” They claim this instability is being deliberately orchestrated to erode customer trust and benefit other private banks.
Islami Bank has long been a preferred choice for expatriates, handling the highest remittances from countries like Saudi Arabia, Qatar, and the United Arab Emirates. However, ongoing uncertainties, irregularities, and management failures have shattered this trust. Expatriates are now turning to alternative banks, causing Islami Bank to lose a critical revenue source.
Planned destruction or policy failure ? :
The question now arises: Is Islami Bank’s current state solely the result of corruption and irregularities, or is there a deliberate blueprint behind it?
Some former and current bank officials state, “The repeated creation of leadership instability, cancellation of board meetings, and stalling of chairman appointments clearly indicate a conspiracy. The central bank could restore stability if it wanted to, but it isn’t. Instead, top regulators are trying to place an anti-Islamic figure, a friend of theirs, in the driver’s seat of this Sharia-based bank.”
In this situation, Islami Bank is not just an institution but a warning signal for the entire banking sector of the country. Where political influence, business group dominance, and regulatory bias can combine to destroy a successful bank, financial security, transparency, and accountability remain nothing but a mirage.
