Islami Bank's new chairman not a defaulter, wife's firm defaulted on loan: BB
Khurshid Alam was not personally a borrower of the loan and therefore cannot be described as a loan defaulter, says BB spokesperson
Bangladesh Bank has clarified that newly appointed Islami Bank Bangladesh PLC Chairman Md Khurshid Alam is not a loan defaulter, although a company jointly owned by his wife has defaulted on a bank loan.
"There is no obstacle to Khurshid Alam serving as chairman due to his wife's loan default status," said the central bank's Executive Director and spokesperson Arief Hossain Khan while speaking to reporters today (2 June).
Responding to a question, he said an inquiry found that Khurshid Alam's wife is a joint owner of a company that borrowed Tk3 crore from First Security Islami Bank. The loan subsequently became classified as defaulted.
Keep updated, follow The Business Standard's Google news channel
However, he said Khurshid Alam was not personally a borrower of the loan and therefore cannot be described as a loan defaulter.
Yesterday, a fresh wave of tension gripped Islami Bank as disputes over ownership control and leadership escalated into street protests in Dhaka's Motijheel area, raising fresh concerns over depositor confidence in the country's largest private lender.
Hundreds of demonstrators under the banner of the "Islami Bank Sacheton Grahok Forum" gathered outside the bank's head office, demanding the removal of newly appointed chairman Md Khurshid Alam.
During the protest, police used water cannons, sound grenades, tear gas, and baton charges to disperse demonstrators. Chases and counter-chases were also reported in the area.
Earlier on 24 May, M Zubaidur Rahman stepped down as chairman of Islami Bank, reportedly under pressure from the political party – Bangladesh Jamaat-e-Islami.
Zubaidur, who was appointed by Bangladesh Bank on 23 July last year during the tenure of former governor Ahsan H Mansur, submitted his resignation to newly appointed governor Md Mostaqur Rahman in the afternoon of 24 July.
The central bank moved quickly to appoint Khurshid Alam as the new chairman the same day, even after office hours, on the last working day before the Eid vacation.
Khurshid, who previously served as deputy governor during the ousted Sheikh Hasina government, was forced to leave the central bank following protests by over a hundred officials of Bangladesh Bank a day after the political changeover on 5 August 2024.
