Islami Bank Chairman Zubaidur Rahman resigns

Professor M Zubaidur Rahman, independent director and chairman of Islami Bank Bangladesh PLC, resigned on Sunday, citing personal reasons.

He submitted his resignation letter to the governor of Bangladesh Bank. 

Bangladesh Bank appointed him as an independent director of the bank in July 2025. He was subsequently elected chairman and had been serving in that role since then. At the time, Ahsan H. Mansur was the governor of Bangladesh Bank.

According to several Bangladesh Bank officials, differences emerged between central bank officials and senior executives of Islami Bank over various decisions concerning the bank following the appointment of Governor Mostaqur Rahman.

Zubaidur Rahman later went abroad on a one-and-a-half-month leave, with the condition that he would attend board meetings online. The bank's Managing Director, Omar Faruk Khan, was also sent on leave. Their leave was approved at a meeting of the bank's board of directors on April 12.

Officials of Bangladesh Bank and Islami Bank said a meeting of the bank's board of directors was scheduled to be held at its head office on Sunday. However, customers and a section of bank employees staged a protest outside the head office, opposing the resignation of Managing Director Omar Faruk Khan.

The protesters also demanded the resignation of Chairman M. Zubaidur Rahman. Amid the situation, Zubaidur Rahman submitted his resignation letter to Bangladesh Bank on Sunday.

Meanwhile, a source at the bank confirmed that Omar Faruk Khan, who is currently on leave, has also submitted his resignation letter to the board of directors. However, no decision was taken on the matter as the board meeting was cancelled.
Attempts were made to contact both Zubaidur Rahman and Omar Faruk Khan by phone for comment, but their statements could not be obtained.

According to the bank's annual report, Islami Bank's profit declined from about Tk 447 crore in 2016 to Tk 137 crore in 2025.
During the same period, the bank's default loan ratio rose sharply from 4.25 percent to 49 percent. As of now, more than Tk 92,000 crore in loans are classified as defaulted.

The shareholding of foreign investors in the bank fell from 63 percent to 17.91 percent as of March 2026. Meanwhile, Bangladesh Bank took control of approximately 82 percent of the bank's shares over allegations linked to the involvement of S Alam Group.