5 CEOs of Crisis-Hit Banks Placed on Leave

Managing Directors of Five Crisis-Hit Banks to Be Sent on Compulsory Leave for International Audit

The Managing Directors (MDs) of five struggling banks will be placed on compulsory leave to facilitate an international audit, following directives from Bangladesh Bank (BB), according to officials.

The instruction targets shariah-compliant banks owned by S Alam Group. First Security Islami Bank (FSIB) has already implemented the order, sending its MD, Syed Wasek Mohammad Ali, on forced leave for three months. This decision was made during an emergency board meeting held on Saturday, January 4.

FSIB’s chairman, Mohammad Abdul Mannan, confirmed the development, stating that Additional Managing Director Abu Reza Md. Yahia has been appointed as acting MD.

Four other banks—Union Bank, Global Islami Bank, Exim Bank, and Social Islami Bank—are also on the central bank’s list for similar actions. Preparations to place their MDs on leave are currently underway.

An official from BB disclosed that an emergency meeting with the boards of these banks took place last Thursday, January 2. The central bank instructed the removal of senior executives, including MDs closely linked to S Alam Group, to ensure a transparent investigation and enable necessary reforms.

In response, FSIB’s board acted swiftly, finalizing its decision to send the MD on leave. Meanwhile, Social Islami Bank, recently released from S Alam’s control, has scheduled an emergency board meeting for Sunday, January 5, to address similar matters.

Changes to leadership across the remaining banks are expected soon.

FSIB’s chairman, Mohammad Abdul Mannan, who assumed the role on September 1 following a BB-led board restructuring, emphasized that the decision aligns with ongoing reforms in the banking sector. Mannan succeeded Saiful Alam Masud, head of S Alam Group, who previously chaired FSIB.

Mannan himself was removed from Islami Bank in 2017 after S Alam Group gained control of the institution.

Speaking anonymously, a chairman from one of the affected banks noted, “MDs who were in charge during the period of corruption will be sent on temporary leave to allow international auditors to operate independently under BB oversight.”

The decision is reportedly based on recommendations from the Banking Task Force, which was established to spearhead reforms in the sector.