BB governor urges new Al-Arafah Islami Bank board to step up loan recovery
On 15 July, Bangladesh Bank restored the bank’s shareholder-directors to the board.
Bangladesh Bank Governor Mostakur Rahman has instructed the reconstituted board of Al-Arafah Islami Bank to intensify loan recovery efforts, strengthen corporate governance and ensure professional management of the bank.
He gave the directives at a meeting with the bank's newly formed board at the central bank yesterday (23 July).
The meeting was attended by Al-Arafah Islami Bank Chairman Badiur Rahman, Executive Committee Chairman Selim Rahman and eight other directors, alongside deputy governors and other senior Bangladesh Bank officials.
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A senior Bangladesh Bank official who attended the meeting confirmed the development to The Business Standard.
According to central bank sources, the meeting was held to introduce the governor to the newly reconstituted board and discuss the bank's future priorities.
A senior official present at the meeting said Bangladesh Bank instructed the board to operate the bank in full compliance with regulatory requirements, with particular emphasis on recovering non-performing loans and ensuring good governance.
On 15 July, Bangladesh Bank restored the bank's shareholder-directors to the board. The reconstituted board retained five independent directors and added 14 entrepreneur-shareholder directors. It later elected its chairman, executive committee chairman and the heads of other board committees.
Sources said the bank is now being managed by a board comprising shareholder-directors and Bangladesh Bank-appointed independent directors, while a central bank observer continues to oversee its operations.
During the Awami League government's tenure, Al-Arafah Islami Bank was controlled by the S Alam Group and the KDS Group. At the time, the bank's chairman was Abdus Salam, brother of S Alam Group Chairman Saiful Alam.
Following the political transition in August 2024, Bangladesh Bank dissolved the bank's board and appointed a five-member independent board. After nearly two years under that arrangement, the central bank has reconstituted the board with the participation of entrepreneur-shareholders, including representatives of the KDS Group.
