Islami Bank Bangladesh PLC has dismissed eight senior officials amid employee protests alleging corruption and banking irregularities.
The officials, reportedly close to the controversial S Alam Group, include one Additional Managing Director (AMD) and five Deputy Managing Directors (DMDs). The remaining two were heads of key departments within the bank.
They were dismissed after bank employees demanded their removal for alleged involvement in "looting the bank," a bank official told The Financial Express.
The dismissed officials include Additional Managing Director JQM Habibullah, Deputy Managing Directors Md Akij Uddin, Mohammad Sabbir, Miftah Uddin, Kazi Md Rezaul Karim and Md Abdullah Al Mamun.
Besides, the bank's Chief Anti-Money Laundering Compliance Officer (CAMLCO) Taher Ahmed Chowdhury and the Principal of the Training Institute Md Nazrul Islam were also dismissed.
Of the dismissed executives, Akij Uddin, S Alam Group owner Saiful Alam's personal secretary, and Miftah Uddin, held the position of DMD and were responsible for loan distribution and human resources.
Discontent at Islami Bank has been brewing since the downfall of the Awami League government on 5 August amid a student-led uprising.
The following day, a protest was held at the bank's headquarters, barring entry to staff hired by S Alam Group after it took over the bank in 2017.
Since the S Alam takeover, nearly 14,000 staff members, mainly from Chattogram's Patiya, have been hired. Before 2017, the bank had around 8,000 employees.
The old employees have been calling to purge Islami Bank of S Alam and Patiya region influences -- Saiful Alam's hometown.
They have also demanded the dissolution of the bank's board and prosecution of those involved in loan irregularities.
On August 11, a daylight shootout at Islami Bank, allegedly over ownership disputes, left six people injured, prompting the finance adviser of the newly formed interim government to warn of stern legal action against those responsible.
Since 2017, S Alam Group and Rajshahi-based Nabil Group, with aligned interests, allegedly siphoned off nearly Tk 500 billion from the bank, constituting one-third of its total loan portfolio.
Reports suggest the actual amount siphoned off could be higher, as many loan procedures were allegedly violated to facilitate this.
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