Business Report :
After the change of government, chairmen from various private banks are resigning.
Even before the intervention of Bangladesh Bank, many people were leaving their posts. Some are leaving due to fear of political ire.
In the meantime, the chairman of three private banks have changed quietly. Similar changes are being discussed at several other banks.
Bankers say that earlier the chairman of the bank used to resign at the end of a certain term and give opportunity to others.
In view of the demands of the bank chairman, the Bank Company Act was changed three times during the three terms of the Awami League government.
According to the latest amended law, a chairman can serve for a maximum of 9 years in three consecutive terms.
The bank chairmen applied pressure on the previous Awami League government and introduced this provision for their own interests. As a result, most of the private banks were chaired by people close to the government.
But after the political change in the country on August 5, government-close and influential people in private banks have started leaving the post of chairman.
Standard Bank
On Wednesday, chairman of the private sector Shariah-based Standard Bank Kazi Akram Uddin Ahmed resigned. Mohammad Abdul Aziz has been appointed as the new chairman in his place.
He will serve as chairman for the next one year.
Kazi Akram Uddin Ahmed was the chairman of the bank which started its journey on May 11, 1999 for 25 consecutive years. He is a member of Awami League’s advisory council and former president of FBCCI, an apex organization of businessmen.
Before this, Salim Rahman became the chairman of Al-Arafah Islami Bank last Sunday. He is the son of KDS Group founder Khalilur Rahman.
The bank’s chairman before him was Abdus Samad, brother of Saiful Alam (S Alam), chairman of the S Alam Group.
An official of the bank, requesting anonymity, said Bangladesh Bank took various steps against S Alam Group banks after the change in the country. In this context, Abdus Samad himself resigned.
However, the bank is still under the control of S Alam Group.
Former managing director (MD) AKM Zakaria of First Security Islami Bank controlled by S Alam Group and former MD of Social Islami Bank Kazi Osman Ali are still directors of the bank.
Also, former MD of Islami Bank Abdul Hamid Mia is also an independent director.
Meanwhile, there has been a change in the chairmanship of United Commercial Bank (UCB) amid shareholder protests after the change of government. The new chairman is Roksana Zaman Chowdhury, sister of former land minister Saifuzzaman Chowdhury Javed.
Before that, Rukhmila Zaman, wife of Saifuzzaman Chowdhury, was the chairman.
Why the reforms
It is known that around 15 banks were approved during the three terms of Awami League from 2009. All of which are given political considerations.
Apart from this, almost all the banks have gone under the control of pro-Awami businessmen due to being in power for three terms. Banks which have incumbent leaders and former MPs as chairman are leaving the post after reshuffle.
Bangladesh Bank has already dissolved the Board of Directors of Islami Bank and National Bank.
Abdul Awal Mintoo, former entrepreneur of the bank and vice-chairman of BNP, has been given the responsibility of the reconstituted board.
The responsibility of managing Islami Bank is being given to independent directors.
Meanwhile, Sonali Bank chairman Ziaul Hasan Siddiqui has resigned after the change of government.
IFIC Bank is now strongly promoting the fact that the government has a 32% stake.
The chairman of the bank was former prime minister Sheikh Hasina’s adviser Salman F Rahman, who single-handedly ran the bank for more than 10 years.
His son Shayan F Rahman was removed from the directorship of the bank due to default after the change of government.
Meanwhile, Bengal Commercial Bank, under the control of S Alam, said that the government owns 51% of the bank’s shares.