Islami Bank MD sent on mandatory leave amid loan irregularities

Islami Bank Bangladesh Ltd, Mohammed Monirul Moula, has been sent on a three-month mandatory leave starting Monday, following allegations of his involvement in irregular loan disbursements and favoritism towards several large business groups.

The decision was made during the bank’s 359th board meeting on Sunday. 

Alongside the move, Additional Managing Director Omar Farooq Khan has been appointed as the Acting MD of the bank, board sources confirmed.

According to officials, the decision was prompted by findings that linked Monirul Moula to irregular financial practices, including the unauthorized facilitation of loans to controversial conglomerates such as S. Alam Group and Nabil Group. 

These allegations came to light during an audit ordered by Bangladesh Bank after a major reshuffle of the bank’s board of directors, following the fall of the Awami League government.

The central bank had restructured Islami Bank’s board under new Chairman Md Obayed Ullah Al Masud, a former senior banker, and commissioned four independent audit firms to investigate previous financial activities. The audits reportedly uncovered irregularities in loan approvals totaling nearly one trillion taka, much of which is tied to entities connected with S. Alam Group.

Monirul Moula was appointed as MD during the period when Islami Bank was under the influence of S. Alam Group, which had strong ties with the former ruling party. Sources claim that Moula played a key role in enabling the group to access loans—both under its own name and through proxies—undermining the bank’s financial stability.

Following the board meeting, Islami Bank also announced plans to submit documentation of Moula’s alleged misconduct to Bangladesh Bank, requesting his formal removal under Section 46 of the Bank Companies Act.

Additionally, the Anti-Corruption Commission (ACC) recently filed a case against 58 individuals, including former Islami Bank chairman, Ahsanul Alam, son of S. Alam Group’s owner, and Md Monirul Moula. The case accuses them of embezzling Tk 1,092 crore through loan fraud.