Khurshid new chairman of Islami Bank as incumbent quits

Former Bangladesh Bank Deputy Governor Md Khurshid Alam was appointed independent director and chairman of Islami Bank Bangladesh on Sunday afternoon in quick succession after the incumbent quit amid commotion outside.

Prof M. Zubaidur Rahman earlier in the day resigned as chairman of the bank, in a latest development in shariah-based lender.

He submitted his resignation to Bangladesh Bank on Sunday. The central bank issued an order on the new appointment.

In a separate order, the Financial Institutions Division appointed former banker Mohammed d Nurul Amin as chairman of Bangladesh Krishi Bank.

Both the official orders were seen by the FE on Sunday evening.

Bangladesh Bank had appointed M. Zubaidur Rahman as an independent director of the bank in July 2025. Since then, he had served as board chairman. At the time, economist Dr Ahsan H. Mansur was the governor.

It has been learned from several Bangladesh Bank officials that after the BNP government took office and Mostaqur Rahman joined the post of governor, the central bank officials and high-ranking officials of the bank had disagreements over various decisions regarding Islami Bank.

The chairman of Islami Bank went out of the country on a one-and-a-half-month leave on condition of attending online meeting. Along with this, the bank's managing director, Omar Faruk Khan, was also sent on leave. Their leave was approved at the board-of-directors meeting of Islami Bank on April 12.

Bangladesh Bank and Islami Bank officials say that a board meeting was called at the bank's head office on Sunday. The bank's customers and some officials started a movement outside the head office.

Mr Zubaidur Rahman sent his resignation letter to Bangladesh Bank later in the day.

Meanwhile, a source in the bank confirmed that managing director Omar Faruk Khan, who is on leave, has also submitted his resignation letter to the board of directors.

However, no decision has been made on this matter as the board meeting was canceled following huge protest outside the HQs at Dilkusha in the city.

Attempts were made to contact both Mr. Zubaidur Rahman and Mr. Omar Faruk Khan over the mobile phone but their statement could not be obtained.

In 2017, S Alam Group took control of the bank. After the fall of the Awami League government, Bangladesh Bank removed them and appointed independent directors.

The shares of foreign investors in the bank's ownership decreased from 63 percent to 17.91 per cent (March 2026). On the other hand, Bangladesh Bank seized about 82 per cent of the bank's shares due to S Alam's involvement.

jasimharoon@yahoo.com