Islami Bank unrest turns violent

Fresh tensions erupted at Islami Bank Bangladesh PLC on Monday as the police dispersed protesters demanding the cancellation of the appointment of the bank’s newly appointed chairman. 

The demonstration, organised by the Islami Bank Customers’ Forum in front of the bank’s head office in Motijheel, was broken up using baton charges, water cannons and sound grenades, according to protesters and witnesses. 

Amid the growing controversy, Bangladesh Bank defended its decision, saying that the appointment was made in line with existing laws and regulations and would not be influenced by street protests or political pressure.

According to sources at the bank, the human chain programme began around 9:30am in front of the bank’s headquarters. Shortly after it started, the police arrived and urged protesters not to block the road. When the organisers attempted to display banners and placards, the police used water cannons, sound grenades, and baton charges to remove them from the area.

Witnesses said that panic spread throughout the banking district during the incident. Protesters alleged that unnecessary force had been used against a peaceful gathering. The police, however, claimed that the demonstrators were causing public inconvenience by blocking the road.

Motijheel police station Investigation Officer Abdus Salam told journalists that, “Some customers of the bank had blocked the road. We dispersed them.”

The Customers’ Forum held another protest rally, where the forum’s president, Nurun Nabi Manik, demanded the immediate cancellation of the appointment of the new chairman, Mohammad Khurshid Alam and reinstatement of the bank’s former managing director Omar Faruk.

Speakers at the rally alleged that appointing controversial individuals to key positions at the bank undermines its interests and the customers’ confidence. They emphasised the need to ensure transparency and accountability in the management of Islami Bank.

The forum leaders also called for the return of S Alam Group founder and chairman Mohammad Saiful Alam to Bangladesh to face justice, and for steps to recover money allegedly laundered abroad.

In addition, protesters demanded accountability from policymakers involved in the appointment of Khurshid Alam, alleging that important decisions had been made while ignoring the concerns and opinions of customers.

High officials of the bank who were stranded inside amid the protest left the office at around 8:30pm on Monday under police protection. Meanwhile, protesting depositors announced fresh “peaceful” demonstrations in front of the bank’s branches across the country from 9:30am today.

On the last working day before Eid-ul-Azha, Islami Bank Chairman Professor M Zubaidur Rahman resigned from his position. He had been serving as an independent director nominated by Bangladesh Bank. Later that night, at around 9pm, Bangladesh Bank appointed former deputy governor Md Khurshid Alam as the new chairman of the bank.

Following the appointment, discussions and criticism emerged on social media and in various circles. Under the banner of the Customers’ Forum, protest programmes were organised in different parts of the country during the Eid holidays. 

Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan said that no banking decision would be made based on street protests or pressure.

Speaking to journalists, he said, “Every individual or group has the right to protest and express their opinions. They also have the right to seek remedies through legal channels. However, Bangladesh Bank will make decisions based on institutional interests and legal provisions, not on emotions, pressure, or movements.”

He further stated that under the Bank Company Act, a loan defaulter cannot serve as a bank director. Various issues highlighted in media reports and identified through Bangladesh Bank inspections are currently being reviewed. 

Regarding the ongoing tensions surrounding Islami Bank, Arief Hossain Khan said that due to concerns about potential unrest and information circulating on social media, permission had been granted for the bank’s board meetings to be held virtually rather than in person.

The spokesperson also stressed that the governor’s position is clear: political interference in either the central bank or any commercial bank will not be tolerated. Moreover, no bank should be identified with any specific political party. If a bank becomes dependent on a political identity, it could pose a serious threat to its long-term stability and sustainability.

Meanwhile, Bangladesh Jamaat-e-Islami strongly condemned what it described as police attacks on Islami Bank customers.

In a statement, the party’s secretary general and former member of parliament, Mia Golam Parwar, said that the demonstrators had been conducting a completely peaceful and lawful programme but were subjected to force without any provocation. He also alleged that many depositors had been injured and that some were receiving treatment in hospitals.

In the statement, Golam Parwar said, “Banks operate on the deposits of the people. No bank can survive while ignoring the interests of its customers. Firing on ordinary customers to silence their voices is unacceptable under any circumstances.”