TDS Desk:

The board of Islami Bank, controlled by S Alam Group, will be dissolved within the two days and all shares of the bank under the control of S Alam Group will now be under the government’s control, Bangladesh Bank Governor Ahsan H Mansur said Wednesday (21 August).

“Islami Bank’s board will be dissolved and independent directors will be appointed for a short period of time. Subsequently, former directors holding 2% of share capital will be taken on the board,” the governor told a press briefing Wednesday (21 August).

Currently, among the directors, former shareholders do not hold 2% or more shares, due to which the independent director will be brought in, added.

“The shares will be released to S Alam if they can repay the bank loan. S Alam’s liabilities will be adjusted if the loan is not repaid by selling the shares,” he added.

Asked if boards of all banks under S Alam Group’s control would be dissolved, Ahsan H Mansur said, “We are not in such a rush. A decision will be taken about the boards of these banks gradually.

“Yesterday, we dissolved the National Bank board,” he said.

Earlier on 20 August, the Bangladesh Bank dissolved the board of directors of the National Bank on the grounds of numerous irregularities for the third time.

BB dissolves National Bank board again, forms new 7-member board

According to an order issued by Governor Ahsan H Mansur on Tuesday, the banking regulator dissolved the National Bank’s board to protect the depositors’ money and public interest.

The order states that the National Bank Limited board is involved in activities contrary to the interests of the bank company and depositors by disrupting the financial condition of the bank due to policy-making weakness.