Islami Bank MD sent on leave amid irregularities linked to S Alam, board seeks cenbank approval for removal

The Board of Directors of Islami Bank has sent Managing Director (MD) Mohammad Monirul Moula on leave for three months.

Besides, the board chairman has written a letter to the Bangladesh Bank this evening (6 April) seeking approval for his removal from the position, a board official confirmed the matter to The Business Standard.

The decision was made during the 359th meeting of the bank's Board of Directors today. Omar Faruq Khan, the bank's additional MD, has been appointed as the acting MD, the official said.

The letter sent to the central bank states that four audit committees were formed to assess the overall situation of the Islami Bank. The preliminary reports from each audit committee revealed Moula's involvement in the majority of loan investments.

"Therefore, a request has been made to the central bank to take action against him in accordance with the bank law," it added.

Islami Bank took action against Monirul Moula due to his involvement in loan-related irregularities associated with S Alam Group's owner Mohammed Saiful Alam.

A bank source said the letter to the Bangladesh Bank requests the removal of Moula under Section 46 of the Bank Company Act due to his misconduct. It is typically the responsibility of the central bank to take action against banks' managing directors.

According to media sources, after the fall of the Awami League government in 2024, the Bangladesh Bank restructured the Islam Bank's Board of Directors, appointing former banker Md Obayed Ullah Al Masud as chairman.

Since 2017, the bank has been under the control of the S Alam Group, closely linked to former prime minister Sheikh Hasina. Following the formation of the new board, four audit firms were commissioned to investigate potential irregularities.