Head of Islami Bank’s board urges customer confidence

Executive Director of Bangladesh Bank and Interim Head of the Board of Directors of Islami Bank Bangladesh PLC Mohammad Zahir Hossain has urged depositors to continue their banking activities without disruption, saying there is “no time to look back” and calling for sustained confidence in the country’s largest Shariah-based lender.

Speaking to the journalists at Islami Bank’s head office on Monday, shortly after assuming responsibility for the board, Zahir said efforts are underway to form a new board as quickly as possible to ensure stable governance during the transition period.

He said a five-member board is being constituted through a thorough vetting process to ensure that only qualified and completely neutral individuals are appointed.

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“We want to appoint completely neutral individuals who can manage this bank efficiently. Hopefully, you will soon see a well-balanced and independent board,” he said.

Zahir added that he is currently serving as a one-member board for a limited period to ensure that the bank’s operations continue smoothly without any disruption.

“Continue your transactions without hesitation and keep faith in the bank,” he told depositors.

Meanwhile, Islami Bank’s acting managing director Md Altaf Hossain said the bank has received an additional Tk2,500 crore in liquidity support from Bangladesh Bank.

He said the funds were received recently, but the bank has not yet needed to utilise the entire amount.

“We received another Tk2,500 crore from Bangladesh Bank yesterday, and we have not yet needed to use the full amount,” he said, adding that the liquidity support is helping stabilise operations.

He expressed hope that customers who withdrew deposits out of panic would return, noting that account closures at one of the bank’s major branches have fallen by around 75% compared with earlier levels, indicating a gradual recovery in customer confidence.

Addressing concerns over leadership continuity, Zahir clarified that former managing director Omar Faruk could not return to his position.

He said Faruk had already submitted his resignation and that the board had accepted it.

“As his resignation has been accepted, there is no scope for bringing him back to the position,” he said.

Bank officials reiterated that the priority is to maintain uninterrupted services, restore depositor confidence, and complete the formation of a stable and independent board to guide the institution forward.