Clients of Islami Bank demanding the removal of newly appointed chairman Khurshid Alam came under police action in Dhaka's Dilkusha area on Monday, as law enforcers used batons, water cannons and tear gas to disperse the peaceful protesters.
The demonstration, organised under the banner of the Islami Bank Conscious Customer Forum, called for the immediate cancellation of Khurshid Alam's appointment and the reinstatement of former chairman Md Omar Faruk Khan.
The clash erupted during a human chain and protest programme in front of the bank's head office. Witnesses said police moved in around 9:30am to clear the gathering. As protesters refused to leave, officers launched a crackdown, using lathicharge, water cannons and tear gas. Several demonstrators were reportedly injured, triggering panic across the busy commercial district.
Although dispersed initially, protesters later regrouped near the bank premises.
Demonstrators alleged that excessive force was used to suppress a peaceful movement aimed at protecting the bank from further financial deterioration. They claimed Khurshid Alam is linked to interests associated with the controversial S Alam Group and warned that his appointment could pave the way for renewed irregularities at the bank.
Addressing the rally, Forum President Nurun Nabi Manik demanded the cancellation of Khurshid Alam's appointment and the return of Md Omar Faruk Khan as chairman. Speakers also called for the recovery of allegedly laundered funds and demanded the resignation of Bangladesh Bank Governor Mostaqur Rahman over the appointment.
Bank insiders said similar protests had been held in different parts of the country during the Eid holidays, with Monday's programme being a continuation of those demonstrations.
Defending the police action, Motijheel Division Deputy Commissioner Mohammad Harun Or Rashid said authorities had repeatedly requested protesters to leave the area because it houses several major bank headquarters.
"We explained the matter to them from the morning. When they refused to leave despite repeated requests, we were compelled to use force," he told reporters.
The controversy stems from Bangladesh Bank's decision to appoint former deputy governor Khurshid Alam as chairman on May 24 following the resignation of M Zubaidur Rahman, who had been appointed during the interim administration.
Khurshid Alam served as deputy governor from February 2024 but resigned after the political changeover of August 2024 amid protests by Bangladesh Bank officials.
A section of stakeholders has strongly opposed his appointment. Monday's protest also demanded the resignation of the newly constituted board and the restoration of the previous leadership.
Critics allege that Jamaat-e-Islami supporters are backing the movement. Islami Bank was historically associated with Jamaat-linked interests before control allegedly shifted to the S Alam Group in 2017 under the previous Awami League government.
The S Alam Group has since faced allegations of siphoning off and laundering around Tk 2.25 lakh crore abroad.
Meanwhile, Bangladesh Bank insisted that decisions regarding Islami Bank would be taken strictly under legal provisions rather than street pressure.
Speaking to reporters on Monday, Executive Director and spokesperson Arif Hossain Khan said every citizen has the right to protest and seek legal remedies, but regulatory decisions cannot be dictated by emotion, agitation or political pressure.
"Any decision regarding Islami Bank will be taken in accordance with the law and in the best interest of the institution," he said.
He added that under the Bank Companies Act, loan defaulters are barred from serving as bank directors. Media reports and inspection findings concerning alleged default loans and other issues are currently under review, and all legal requirements will be scrutinised before any appointment is finalised.
Referring to the latest unrest, Arif said Bangladesh Bank had allowed the bank's board meeting to be held virtually to avoid disruptions stemming from rumours and tensions spread through social media. While law enforcement agencies are responsible for maintaining order outside the bank, the central bank is closely monitoring its internal security situation.
He reiterated that political interference in Bangladesh Bank or any commercial bank would not be tolerated and urged bank officials to report any such pressure directly to the governor.
"It is dangerous to brand a bank as belonging to any particular political group. Such dependence on political identity poses a serious risk to institutional stability and sound governance," he said.
