FROM PAGE 1

The decision was taken under Sections 45 and 47(3) of the act in the interest of the bank, its depositors and the public, the central bank said.

BB had previously dissolved the board dominated by members of the S Alam family following the fall of the Awami League-led government in August 2024 and appointed five independent directors. The board was subsequently reconstituted several times.

The latest move comes as Islami Bank grapples with a severe liquidity crunch. Over the past two weeks, the bank’s current account balance with the central bank slipped into a deficit of around Tk 4,000 crore amid protests and controversy surrounding Khurshid’s appointment.

To ease the pressure, BB yesterday provided Tk 2,500 crore in emergency liquidity support to the bank.

The crisis had accelerated after Khurshid, a former BB deputy governor, was appointed chairman on May 24, hours after the previous chairman resigned and just before the start of a week-long Eid holiday.

Khurshid was among four senior BB officials who resigned amid protests by central bank employees shortly after the fall of the Awami League government on August 5, 2024.

His appointment immediately triggered concern among stakeholders.

After the Eid holidays, protesters gathered outside the bank’s Motijheel head office on June 1 under the banner of the Conscious Customers’ Forum, demanding cancellation of Khurshid’s appointment and reinstatement of former managing director Omar Faruk Khan.

The demonstrations coincided with accelerating deposit withdrawals, prompting the bank to seek Tk 10,000 crore in liquidity assistance last week.

Jamaat-e-Islami’s open support for the protesters and statements by senior party leaders signalled clear opposition to the new chairman. The party also backed resistance within the bank, where employees voiced objections to the appointment.

The dispute later spilled into parliament, where the government and opposition exchanged allegations over Islami Bank’s broader role and, specifically, its position during the last election.

Home Minister Salahuddin Ahmed alleged that the bank had favoured Jamaat, while Jamaat lawmakers rejected the claim and demanded that the remarks be expunged from parliamentary records.

Jamaat has long been viewed as maintaining close links with Islami Bank since the lender’s establishment in 1983 by individuals affiliated with the party, and Islamic organisations.