Former Bangladesh Bank Deputy Governor Mohammad Khurshid Alam has been appointed as the new chairman of Islami Bank Bangladesh PLC following the resignation of Professor Dr. M Zubaidur Rahman.
The appointment was confirmed through a circular issued on Sunday by the Banking Regulation and Policy Department-1 of Bangladesh Bank. The central bank appointed Khurshid Alam as an independent director and chairman of the country’s largest Shariah-based bank.
Earlier the same day, outgoing chairman Dr. Zubaidur Rahman submitted his resignation letter to the governor of Bangladesh Bank. He had assumed the chairmanship of Islami Bank on July 23 last year.
Khurshid Alam previously served as deputy governor of Bangladesh Bank but resigned amid protests by central bank officials following the student-public uprising and subsequent political transition in August 2024. Demonstrating employees had demanded the resignation of the governor and four deputy governors who were appointed on contract. Facing mounting pressure, Khurshid Alam and fellow deputy governor Kazi Saidur Rahman stepped down from their positions.
The latest leadership change comes as instability continues within Islami Bank’s board under the country’s evolving political landscape. The bank’s Managing Director Omar Faruk Khan has already been sent on compulsory leave.
At the same time, a section of the bank’s customers has been staging protests demanding that former alleged influential groups and accused looters be prevented from regaining control over the bank. Amid the ongoing demonstrations, a scheduled board meeting on Sunday was eventually cancelled.
Banking sector sources said discussions were also underway regarding the possible resignation of Managing Director Omar Faruk Khan, whose compulsory leave is set to continue until May 31.
However, Omar Faruk Khan denied reports of his resignation when contacted by reporters on Sunday evening.
“I did not resign,” he said briefly before disconnecting the call.
Following the political transition in August 2024, Bangladesh Bank restructured the board of Islami Bank and appointed Obayed Ullah Al Masud as chairman. However, after allegations surfaced and bank account information related to him and his family members was sought by authorities, he resigned on July 17 last year. Professor Dr. Zubaidur Rahman subsequently took over the position.
