Islami Bank hit by years of 'irregular hiring'

Islami Bank Bangladesh PLC (IBBL) is facing a severe financial and managerial crisis, stemming from years of irregular recruitment under the previous management linked to S Alam Group, officials say.

The current management has started assessing the competency of thousands of staff who were reportedly hired without proper procedures, reports UNB.

Kamal Uddin Jasim, additional managing director (AMD) of IBBL, said the bank is incurring an annual loss exceeding Tk 15 billion due to the unauthorised hiring of more than 8,000 unqualified and semi-literate staff under the previous administration. Many were allegedly appointed in exchange for money, bypassing public job circulars or examinations.

According to Islami Bank, maintaining these illegally appointed officers has cost the bank over Tk 15 billion annually, amounting to a total loss exceeding Tk 100 billion over the past seven years. Coupled with the alleged looting of more than Tk 1.0 trillion, the bank's financial stability is under serious threat.

Investigations by Bangladesh Bank also revealed that several employees used fake educational certificates. The crisis escalated when approximately 90 per cent of these staff boycotted a competency test arranged by the current management.

Officials report that rebellious employees have engaged in campaigns of slander, held press conferences, and issued threats to management. The bank's official Facebook page was allegedly hacked on Friday, reportedly by outsiders.

A former Islami Bank director expressed concern over customer fund safety, warning that the open defiance of these employees puts bank vaults and cash counters at risk.

The irregular appointments have reportedly turned the once internationally reputed bank into a regional institution heavily influenced by the Chattogram-based S Alam Group. Many recruits spoke only in local dialects, creating communication barriers and deteriorating customer service.

Officials also allege that these staff used their influence to mistreat colleagues, ignore instructions, and force arbitrary transfers within Chattogram. Managers attempting to enforce rules faced false allegations, creating a climate of fear across the bank. Some employees have threatened to return to their positions after the next national election.

Banking professionals warn that such large-scale irregularities and fund misappropriation have undermined public confidence.

Masrur Arefin, managing director of City Bank, said recently, "S Alam alone has destroyed the entire banking sector."

Customers have also voiced frustration online. Aminul Islam wrote on social media: "The illegal bankers of Patiya are protesting to keep their jobs, but why aren't they demanding the return of Tk 1.0 trillion allegedly smuggled by S Alam?"

OFFICIALS BLOCK DHAKA-CTG HIGHWAY

On Saturday, several hundred Islami Bank officials blocked the Dhaka-Chattogram Highway in Sitakunda to press a six-point demand, including reinstatement of terminated employees and withdrawal of "officer on special duty" (OSD) orders.

The blockade began around 11:30am near Fauzdarhat and lasted about 90 minutes, halting traffic on both sides of the busy highway. Police intervention eventually cleared the road around 1:00pm. Earlier, the officials had formed a human chain along the highway.

The protesters claimed that around 5,500 Islami Bank staff in Chattogram are facing severe financial and mental distress due to terminations and OSD status. Despite repeated appeals, no action has been taken, leaving us with no choice but to take to the streets, they added.

Sitakunda Police Station Officer-in-Charge Mujibur Rahman said, "The dismissed officials temporarily occupied the highway, disrupting traffic. We intervened promptly and restored normal movement. No untoward incidents occurred."

Earlier, the terminated officials had announced a work stoppage starting Sunday through a press conference.