Noted banker Muhammad A (Rumee) Ali declined to continue as chairman of the board of directors of the country's first private commercial bank - AB Bank Limited - on Wednesday.
Mr. Ali, also a former deputy governor of the Bangladesh Bank, told the FE that he expressed such intention in the annual general meeting (AGM) of the bank on the day.
"Actually, my tenure has expired and I would not like to continue as the chairman, although my name has been proposed along with other names," he told the FE over phone on the day.
"I have served the bank for three years. More funds need to be injected for strengthening the bank," he added.
In the AGM his written speech read: "I have decided that I will not seek reelection to the board. Therefore, this is my final appearance as the chairman."
He also noted: "For a sustainable growth of the bank in the future there is a caveat… this will only be possible, if we have supportive capital adequacy policy that looks to enhance the bank's ability to grow its lending assets and increase revenue."
There was a rumour that he repeatedly asked the bank owners to increase its capital, but they were not heedful of his request.
Mr. Ali joined AB Bank as the chairman through a company that owns the bank. He was not a sponsor director of the bank. The AB Bank board appointed him as its chairman on 20 April 2019.
According to the annual financial statements, the bank's deposit growth surged by nearly 27 per cent to Tk 298.37 billion in 2021 over that of 2018.
Its profit after tax increased to Tk 716.8 million in 2021. With 0.86 EPS (earnings per share), the bank declared 5.0 per cent dividend for the shareholders for 2021.
Introducing Bangladesh to its very first private sector bank, AB Bank Limited was incorporated on 31 December 1981. The bank started its effective operation from 12 April 1982.
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