Police, protesters face off at Islami Bank HQ

Tensions escalated on Monday in Dhaka’s Motijheel area as protesters remained stationed outside the head office of Islami Bank Bangladesh PLC, while hundreds of police personnel cordoned off the premises with barricades.

The situation flared early in the morning when police moved to disperse demonstrators demanding the cancellation of the appointment
of the bank’s newly designated chairman.

Members of the “Islami Bank Sacheton Grahok Customers Forum” had gathered in front of Islami Bank Tower, forming a human chain and announcing a five-point list of demands, warning of an indefinite movement if their demands were not met.

Authorities deployed around 300 police personnel in and around the headquarters, with approximately 50 stationed directly in front of the main entrance.

Police used water cannons, sound grenades, tear gas shells and baton charges to disperse the crowd, leading to chases and counter-chases in the area.

Several protesters were reported injured, while some police personnel were also hurt after being hit by bricks and stones allegedly thrown by demonstrators.

The protesters are demanding the immediate removal of newly appointed chairman Md Khurshid Alam, reinstatement of former managing director Omar Faruk Khan, appointment of a qualified Bangladesh Bank governor or resignation of the incumbent governor, and a ban on dismissed former employees from entering Islami Bank premises.

They also alleged that Khurshid Alam has links with the controversial S Alam Group, warning that his appointment could expose the bank to renewed financial irregularities.

Speaking to the media, Motijheel Zone Assistant Commissioner of Police Hussein Muhammad Farabi said: “Several hundred customers had gathered in front of Islami Bank Tower since dawn, demanding that the new chairman not be allowed to join.

Their claim is that if this chairman joins, their deposits will be at risk. We requested them to leave, but they did not comply.

Later, at around 9:15am, we used water cannons, sound grenades, and tear gas shells to remove the protesters from the area.”

He added that demonstrators later regrouped in nearby lanes, while police maintained a cordon around the headquarters.

According to protesters, at least 25 people were injured in the clashes, with five admitted to Dhaka Medical College Hospital for treatment.

The unrest follows a recent leadership change at the bank. Former chairman M Zubaidur Rahman resigned on 24 May, after which former Bangladesh Bank Deputy Governor Md Khurshid Alam was appointed as the new chairman later that night. He was scheduled to assume office on Sunday.

Bank officials said protests under the banner of the “Islami Bank Customers Forum” had also taken place in different parts of the country during the Eid holidays, opposing the appointment.

Tensions escalated further when members of the forum allegedly entered the office of acting managing director Altaf Hossain while he was meeting law enforcement officials at the bank headquarters.

Protesters claimed that pressure was being exerted on the acting MD to proceed with a virtual board meeting in the presence of law enforcement personnel.

They also alleged they saw individuals in police uniform and plainclothes inside the office before officials left the room.

Later in the afternoon, forum members again gathered outside the MD’s office, alleging the meeting was being conducted under pressure from law enforcement agencies.

They also drew comparisons with the controversial 2017 takeover of Islami Bank, referencing earlier allegations linked to meetings at a Dhaka hotel at the time.

Responding to journalists, acting managing director Altaf Hossain said Bangladesh Bank had approved an online board meeting for the day, but it could not be held at the office due to ongoing protests.

A senior bank official also claimed that preparations for a virtual board meeting had been made under pressure, adding that an IT team had been sent to the chairman’s residence to facilitate the process.

The board meeting, scheduled for 2:30pm, had not taken place at the time of reporting.

Meanwhile, Bangladesh Bank spokesperson Arief Hossain Khan said no decision regarding any bank would be determined through street protests.

“Any aggrieved individual has the right to stage demonstrations, express opinions or seek legal remedy over any issue.

However, Bangladesh Bank will make decisions in accordance with rules and regulations, based on what is suitable for the institution and legally justified,” he said.

He added that it was inappropriate to associate any bank with a specific political party, warning that such branding could threaten financial stability.

“If a bank seeks to establish itself under the identity of a specific political party or continues to grow with such an identity, it may pose a major threat to the bank’s sustainability,” he said, adding that the central bank was reviewing whether some banks were becoming linked to political organisations.